Page 11 - Insurance Times June 2021

board structure and adopt new changes at the "constitutional level". houses or digital entities from
accounting standards before its initial The LIC board, presently, is not as per publishing its logo without the prior
share sales. the prescribed SEBI norms. (Mint) permission.
The anchor investors will be invited The 65-year-old LIC, which is soon
"after the embedded valuation Government gives nine- going for its IPO, has warned stringent
exercise is done" and the IPO pricing month extension to LIC legal or civil action against any person
is "ready", a source told. found misusing its official logo, in a
chairman
The Centre is mulling to draw in a post on Friday.
clutch of anchor investors to pump in The government has given a nine- The simple but logo consists of a flame
up to Rs 25,000 crore in the shares of month extension to LIC chairman M R symbolizing 'life' with two shielding
Life Insurance Corporation of India Kumar till March next year in view of hands of 'life insurance' indicating its
(LIC) in its IPO (Initial Public Offering). the insurer's proposed initial public
offer towards the end of the current protection, with the Sanskrit legend
LIC will also undergo a change in its below it - "Yogakshemam
fiscal. In her budget speech 2021,
board structure and adopt new Vahmyaham", derived from the
finance minister Nirmala Sitharaman
accounting standards before its initial Bhagwad Gita, and the LIC
said the initial public offer (IPO) of LIC
share sales. headquarters at Nariman Point in
would be floated in 2021-22 as part of
The anchor investors will be invited the ambitious Rs 1.75 lakh crore south Mumbai is also named
"after the embedded valuation disinvestment target. The government 'Yogakshema'.
exercise is done" and the IPO pricing has approved the proposal of the The LIC warning on social media
is "ready", a source told. department of financial services for states: "LIC Public Alerts -

There may be over two dozen (24) extending the term of Kumar from Unauthorized use of LIC's Logo. LIC
anchor investors in LIC's IPO, another June 30, 2021 till March 13, 2022, the logos cannot be used in any website,
source added. A mere 10% stake in the date when he completes three years, publishing material and digital post.
country's largest insurer is assessed to sources said. Strict legal action - civil and criminal -
be worth at least Rs 1 lakh crore, which The sources said the rules under the will be taken against such person."
is remarkably high for the Indian equity Life Insurance Corporation Act, 1956,
market. have been amended to provide
The anchor investors will purchase a extension beyond 60 years in view of LIC hikes stake in UBI to
portion of LIC's shares, meant for the ongoing preparation for the IPO, over 5%
qualified institutional buyers (QIBs). "If they added. Kumar was to retire this The Life Insurance Corporation of India
anchor investors pay a certain amount month upon attaining the age of 60 (LIC) has hiked its stake to 5.06% in
and the market is ready to pay more years.
state-run Union Bank of India with
than that on the day of IPO, the
anchor investors will have to bring in IPO-bound LIC warns acquisition of nearly 2% additional
stake in the bank.
the extra amount to match the
against misuse of its iconic
market price. If the market shows a Earlier, the LIC held 3.09% stake in
demand of less, we don't have to logo UBI, representing 19,79,23,251 equity

refund the extra amount to anchor The country's largest public sector shares of the bank, as per a regulatory
investors. This is the benefit of having insurer, Life Insurance Corporation of filing of LIC sent to exchanges through
anchor investors," the source further India (LIC) has issued a public warning Union Bank of India recently.
told the publication. over the unauthorized use or misuse of However, on May 20, LIC increased its
Meanwhile, the state-run insurer is its iconic logo by anybody. stake to over 5% after picking up
"aligning" its compliance processes According to its Twitter handle, the LIC 14,78,41,513 shares of the bank in a
with listing norms and will make has barred any websites, publishing preferential allotment. T

The Insurance Times, June 2021 11