LIC IPO valuation: Should the real-estate portfolio be included? Analysts are divided.

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LIC Building at Nariman Point, Mumbai

Synopsis
India’s largest life insurer, LIC, has filed for the biggest-ever IPO. But, how to reach the valuation? A rough estimate indicates valuation of around INR16 lakh crore. However, it may go up if the market value of the properties owned by LIC is considered. Will the issue be attractive enough for investors?

Raj Kumar, managing director, Life Insurance Corporation (LIC), works out of Yogakshema, a prime building located at Mumbai’s Nariman Point. The property is a part of LIC’s overall real-estate portfolio, which has become a topic of discussion ahead of the insurance behemoth’s forthcoming initial public offering (IPO). Will LIC’s real estate be also considered in the IPO valuation? The question has left analysts divided. LIC, the country's