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Ahead of LIC IPO a look at some worrying spots

While the cheap valuation compared to peers is a positive, losing market share to peers, not all decisions taken by the largest life insurer in the country being sync with shareholders’ interests, weak digital presence, and accumulated losses of Rs 6,028 crore are worrying some analysts

April 30, 2022 / 07:37 AM IST

Life Insurance Corporation of India (LIC) will open its public issue for subscription next week with most analysts giving a ‘Subscribe’ rating to the issue, thanks to cheaper valuation compared to listed insurers. Anand Rathi, Religare Broking, Marwadi Financial Services and Samco Securities have given ‘Subscribe’ ratings.

However, some analysts are also cautioning investors against the pitfalls of investing in the country's largest life insurer.

LIC has been consistently losing market share to private peers. Currently, LIC holds 64 percent market share in terms of total life insurance premium. It grew at a compounded annual growth rate (CAGR) of 9 percent during FY16-21, while private insurers grew at 18 percent.