Page 18 - Insurance Times May 2023

IndiaFirst Life gets Sebi criticism of its investment in Adani
Govt appoints S
group companies.
nod for IPO
Mohanty as LIC's acting After the Adani group lost over $100
IndiaFirst Life Insurance, promoted by
chairperson billion in valuation post scathing
Bank of Baroda, has received the
allegations by U.S.-based Hindenburg
The government appointed Securities and Exchange Board of
Research, state-run LIC was criticized
Siddhartha Mohanty, who is India's (SEBI) approval to raise funds
for having over $4 billion exposure to
currently serving as the managing through an initial public offering (IPO).
companies from the group.
director (MD) of Life Insurance
The life insurer had in October 2022
Corporation (LIC), as its Acting LIC, the country's largest domestic
sought approval for the public issue,
Chairperson for three months from institutional investor with assets under
which consists of a fresh issue of equity
March 14. management of about $539 billion, is
shares worth up to Rs 500 crore and
M.R. Kumar, who was the an offer-for-sale (OFS) of up to 14.1 planning to cap its debt and equity
Chairperson of the LIC, completed crore shares by the promoter and exposure in individual firms, group
his term on March 13. "We advise selling shareholders. companies and companies that are
that in view of the completion of backed by same promoters, one of the
Bank of Baroda will offload about 8.9
term of Kumar as Chairperson of sources, with knowledge of the matter,
crore shares, Carmel Point
LIC of India, on March 13, 2023, told Reuters.
Investments India will tender 3.9 crore
the Ministry of Finance has
shares, and Union Bank of India "LIC is looking to have 'boundary
conveyed the approval of the
another 1.3 crore shares. conditions' on its investments that
Competent Authority, for
would limit its exposure to scrips," said
IndiaFirst Life, may in consultation
entrusting financial and
the source.
with merchant bankers, consider a
administrative powers and
private placement, preferential The sources did not want to be named
functions of Chairperson, LIC in the
allotment, rights issue or any such as the discussions are private until the
interim to Siddhartha Mohanty,
other method aggregating up to Rs 100 LIC's board approves the plan. The LIC
Managing Director," LIC said in an
crore before the IPO, in which case the
exchange filing. and federal finance ministry did not
fresh issue size will be reduced. immediately reply to e-mails seeking
"This is in addition to his own
comment.
duties, for a period of three
LIC plans to cap exposure
months, with effect from March The caps, once approved by the LIC
14, 2023, or till assumption of the to companies board, would further limit the insurer's
charge by the regular appointee LIC is planning to impose caps on its exposure. Currently, the insurer cannot
to the said post, or until further debt and equity exposure to invest more than 10% of outstanding
orders, whichever is the earliest," companies, two sources said, in a bid equity in a company and 10% of the
LIC said. to lower concentration of risk following outstanding debt.
The Insurance Times May 2023 17