LIC DRHP reveals the size of life insurer's unlisted equity portfolio

NEW DELHI: Life Insurance Corporation of India (LIC), a key institutional player in the stock market, said it holds a negligible proportion of its investments in unlisted equity and other investments, which are not readily tradable on the market.

As of September 30, 2021, the value of those investments stood at Rs 2,866.14 crore or 0.08 per cent of total investments on a standalone basis, the life insurer said in a draft red herring prospectus filed with Sebi.

LIC said it had not faced any circumstances in the past three years and the six months ended September 30, 2021, where it was unable to sell potentially illiquid assets or were required to sell the illiquid assets at significantly lower prices.

Overall, LIC held a total of Rs 9,78,493.81 crore worth equity investments as of September 30, representing 24.78 per cent of the total Rs 39,49,516.37 crore worth of investments.

Unlisted equity securities and thinly traded equity securities are measured at historical cost less provision for diminution in the value of such investments, LIC said.

"Such diminution is assessed and accounted for in accordance with the Impairment Policy of the Corporation. A security shall be considered as being thinly traded as per guidelines governing mutual funds laid down from time to time by SEBI," it said.