LIC To Raise Rs 50,000 Crore Through Sale Of Its Real Estate Properties In Major Cities
LIC is the largest insurance provider in India.
Among LIC’s valuable properties are the Jeevan Bharti Building in Connaught Place, Delhi and the LIC Building in Chittaranjan Avenue, Kolkata.
Life Insurance Corporation (LIC) is gearing up to sell its real estate properties in major metro cities across India. The company aims to raise $6-7 billion (Rs 50 to 58 thousand crore) from these sales. LIC will sell plots and commercial buildings as part of this plan. An internal team has been instructed to start the property sale process, beginning with properties in Mumbai.
Among LIC’s valuable properties are the Jeevan Bharti Building in Connaught Place, Delhi, the LIC Building in Chittaranjan Avenue, Kolkata and housing properties in the Asiatic Society and Akbarally areas of Mumbai. The total value of these properties is estimated to be between Rs 50,000 and 60,000 crore during the final valuation.
LIC, the largest insurance provider in India, also holds the title of the top investor in the stock market. The company possesses assets worth Rs 51 lakh crore. Before starting the sale process, LIC plans to evaluate its assets. Many of these assets have not been valued yet. Reports suggest these properties could be worth five times their current valuation, potentially totalling around Rs 2.5 to 3 lakh crore.
In the financial year 2023-24, LIC reported a profit of Rs 40,676 crore. It makes the firm one of the most profitable public sector companies in India. LIC also ranks third when it comes to land ownership in the country, with Indian Railways holding the second position.
To manage and sell its properties, LIC may form a new entity. This move could streamline the process and ensure better handling of the vast real estate portfolio.
The sale of these properties is a significant move for LIC. It highlights the company’s efforts to optimise its assets and generate substantial revenue. The funds raised from these sales could be used for further investments and to strengthen LIC’s financial position.
