For the first time in LIC, an outsider will become CFO, a very important appointment before IPO in the country’s largest insurance company
LIC Appoints Sunil Agrawal as CFO : A very important appointment has been made in the country’s largest insurance company Life Insurance Corporation (LIC) before the IPO. The company has appointed Sunil Agarwal as its Chief Financial Officer (CFO). This is the first time that an outsider has been appointed to such an important post of this big government company of the country. At present, this responsibility is being handled by LIC’s Executive Director Shubhangi Sanjay Soman.
Sunil Agarwal is the CFO of Reliance Nippon Life Insurance
Sunil Agarwal, who has been appointed as the new CFO of LIC, has previously been the Chief Financial Officer of Reliance Nippon Life Insurance for 12 years. During his career, he has also worked for ICICI Prudential Life Insurance for 5 years. LIC had invited applications for the post of CFO in September last year. Agarwal has been appointed to this post on contract basis, for which he will be given about Rs 75 lakh annually. This appointment is for 3 years or till the age of 63 years.
LIC IPO likely to be postponed due to Russia-Ukraine war
LIC’s IPO was ready to be brought in March itself. But keeping in mind the international situation created due to the Russo-Ukraine war, it is being feared that it will be delayed. Finance Minister Nirmala Sitharaman has also indicated that keeping in mind the current environment of the world, the timing of LIC’s IPO can be reviewed.
Through this biggest ever IPO in the country, the Government of India is hoping to raise about Rs 63 thousand crore by selling its 5 percent stake in LIC. At present, 100% shares of LIC are with the central government only. This is the biggest part of the Modi government’s revised target of raising Rs 78,000 crore through disinvestment in the current financial year.
If LIC’s IPO is postponed, then the disinvestment target will remain incomplete
The government has so far managed to raise only Rs 12,030 crore by disinvestment in public companies and selling Air India during the current financial year. In such a situation, if LIC’s IPO has to be postponed for the next financial year, then the Modi government will be far behind from achieving its target. Anyway, the government had earlier set a disinvestment target of Rs 1.75 lakh crore in 2021-22, but later reduced it to 78 thousand crores. Now even achieving this reduced target is not looking easy.
(Input: PTI)
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