“LIC Considers Selling Land and Premium Buildings, Aiming for $7 Billion Boost: Report”

Related Articles

Infosys Terminates 240 Trainees for Failing Internal Assessments, Report Says

2 hours ago

Mumbai Airport to Suspend Operations for 6 Hours on May 9 for Runway Maintenance

2 hours ago

Ashish Saraf Appointed Vice President and Head of India Operations at Pratt & Whitney

23 hours ago

The Life Insurance Corporation of India (LIC) is reportedly considering a strategic move to sell a portion of its premium commercial buildings and land assets across the country, aiming to raise a substantial amount of $6-7 billion (₹50,043-58,384 crore), as per a recent report by Mint.

LIC, known as India’s third-largest landlord, has initiated an internal team to formulate a comprehensive sale plan for its extensive real estate portfolio, which was last estimated to be valued between ₹50,000-60,000 crore. The potential sale may begin with assets in Mumbai and could include iconic properties like the Jeevan Bharti building in Delhi’s Connaught Place, the LIC building in Kolkata, and significant buildings housing renowned entities such as the Asiatic Society and Akbarally’s in Mumbai.

The report suggests that while the previous valuation of LIC’s real estate assets was conservative, the actual market value could be significantly higher, potentially reaching around ₹2.5-3 lakh crore. To facilitate this ambitious monetization plan, LIC may explore the creation of a separate entity to manage and oversee the sale process, given the complexities and challenges associated with valuing these assets accurately.

Legal hurdles have hindered previous attempts to sell LIC’s real estate holdings, but with a renewed focus on monetizing assets under public sector undertakings (PSUs), the government aims to expedite legal resolutions to facilitate such transactions. The proposed sale aligns with LIC’s broader financial strategy, especially amidst challenges in protecting its market share and sluggish growth in premium income.

While LIC’s extensive property holdings have historically contributed to its brand visibility and public trust, the evolving landscape suggests that monetizing non-core assets could unlock significant financial gains. This potential sale could also have a positive impact on LIC’s profitability and shareholder dividends, providing a much-needed boost in the current economic environment.

As LIC navigates these strategic shifts, the outcome of this real estate sale could have far-reaching implications for India’s insurance sector and the broader financial landscape.

Sources By Agencies