LIC Deserves a Better Market Valuation

Doraiswamy expects the govt's other disinvestment plans to get priority over the LIC stake sale

- Anshika Kayastha

The country's largest insurer Life Insurance Corp (LIC) of India deserves a better valuation from the market on the back of an improved customer service and the stronger product portfolio it is building, said R. Doraiswamy, the newly-appointed managing director and chief executive officer.

"If you ask for my personal opinion or our opinion as an organization, we strongly feel that we deserve a better valuation than what we are currently having in terms of EV (enterprise value) multiple," Doraiswamy told Mint in an interview.

Doraiswamy said LIC was valued "lesser" than some of its private sector peers, and expressed hope that the changes being undertaken to make it digital-savvy, improve customer service and strengthen the product portfolio will help boost valuation.

"Surely this will address a perception change, and hopefully the market will have a better valuation in the days to come. That is what we are looking for," he said.