LIC appoints Sunil Agarwal as CFO ahead of mega IPO

New Delhi: IPO-bound Life Insurance Corporation (LIC) has appointed Sunil Agarwal as its Chief Financial Officer (CFO). Sources said Agarwal took charge on Wednesday. This is the first time that LIC has appointed an outsider as the CFO.

Earlier, LIC Executive Director Shubhangi Sanjay Soman was taking over as the CFO of the insurance giant.

Agarwal was earlier the CFO of Reliance Nippon Life Insurance for over 12 years. He was also associated with ICICI Prudential Life Insurance for 5 years.

LIC had invited applications for the post of CFO in September. The post is contractual and the CFO will get a remuneration of around Rs 75 lakh per annum.

The appointment will be for a term of three years or the candidate who attains the age of 63 years, whichever is earlier.

LIC was preparing to go public in March itself. However, the current geopolitical instability arising out of the Russia-Ukraine conflict may lead to the postponement of the mega IPO.

Finance Minister Nirmala Sitharaman had also indicated a review of the initial public offering (IPO) of LIC in view of the changing geopolitical situation.

“Ideally, I would go ahead with it as we had planned it based on purely Indian ideas for some time,” Sitharaman said in an interview with Hindu Business Line. “But if global views warrant that I need to see it, I wouldn’t mind seeing it again.”

The Russo-Ukraine war entered its eighth day on Thursday as fighting intensified in Ukraine’s capital Kyiv and other major cities.

The government was hoping to raise Rs 63,000 crore by selling 5 per cent stake in the life insurance firm to meet its disinvestment target of Rs 78,000 crore in the current fiscal.

If the IPO is postponed to the next financial year, the government will miss the revised disinvestment target by a huge margin.

So far this fiscal, the government has raised Rs 12,030 crore through disinvestment of CPSEs and strategic sale of Air India.

The government had earlier projected to raise Rs 1.75 lakh from disinvestment during 2021-22.

IPO is an offer for sale (OFS) by the Government of India and there is no fresh issue of shares by LIC. The government has 100 percent stake or more than 632.49 crore shares in LIC. The face value of the shares is Rs 10 per share.

LIC Public Issue will be the biggest IPO in the history of Indian stock market. Once listed, LIC’s market valuation will be at par with top companies like RIL and TCS.

So far, the amount raised from Paytm’s IPO in 2021 was the biggest ever at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.

Last week, the government allowed foreign direct investment (FDI) of up to 20 per cent under the automatic route in LIC with a view to facilitate disinvestment of the country’s largest insurer.

The decision in this regard was taken by the Union Cabinet headed by Prime Minister Narendra Modi. Read also: Russo-Ukraine war: SBI halts transactions involving Russian entities under sanctions

Foreign investors may be interested in participating in the mega IPO. However, the existing FDI policy did not have any specific provision for foreign investment in LIC, which is a statutory corporation established under the LIC Act, 1956. Read also: iPhone 11 price cut: Apple smartphone selling for Rs 32,100, know how?

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