Life Insurance Corporation of India IPO

Incorporated in 1983, Kolkata-based Tarsons Products manufactures laboratory products that are used in various research organisations, pharmaceutical companies, academia institutes, hospitals and diagnostic centres.

The company plans to go public and here’s all you need to know about this IPO.

Here’s the consolidated financial information for the last three years:

• Fifth largest life insurer globally by GWP and the largest player in the fast growing and underpenetrated Indian life insurance sector;
• Trusted brand and a customer-centric business model;
• Cross-cyclical product mix that caters to diverse consumer needs and an individual product portfolio that is dominated by participating life insurance policies;
• Presence across India through an omni-channel distribution network with an unparalleled agency force;
• Harnessing technology capabilities to support customer connect and drive operating efficiencies;

• The ongoing COVID-19 pandemic could adversely affect all aspects of thd business, including: (i) restricting the ability of its agents to sell its products; (ii) significantly increasing its expenses due to changes in laws and regulations and investing in new methodologies to overcome the restrictions brought in to address the spread of COVID-19 and the adverse changes in population mortality/morbidity or utilization behaviours; (iii) adversely affecting its investment portfolio; (iv) adversely affecting its operational effectiveness; and (v) heightening the risks its face in the business, including those discussed in this Draft Red Herring Prospectus.
• Its brand name, reputation and perception are critical in maintaining its leading position in the Indian life insurance industry and any unfavourable publicity concerning its could have an adverse effect on its brand name and consequently adversely affect its business, financial condition, results of operations and cash flows.
• Adverse persistency metrics or an adverse variation in persistency metrics could have a material adverse effect on its financial condition, results of operations and cash flows.
• Segregation of the single consolidated 'Life Fund' of the Corporation into two separate funds, viz., a participating policyholders' fund and a non-participating policyholders' fund, effective September 30, 2021 may adversely affect its business, financial condition, results of operations and cash flows.
• Certain investments of the Corporation's pension and group and life annuity funds, which had previously been invested in Approved Investments, have been re-classified as other investment and as such other investments have not been transferred to the Shareholders' funds at amortised cost after 90 days, the Corporation is not in compliance with the IRDAI Master Circular on Investments version two issued in May 2017. The loss that would have accrued in the profit and loss account (Shareholders Account) had these investments been transferred to the Shareholders' funds at amortised cost was Rs. 5365.84 crores as at September 30, 2021.

• Capitalize on the growth opportunities in the Indian life insurance sector
• Further diversify its product mix by increasing the contribution of the non-participating portfolio
• Reinforce its omni-channel distribution network and increase its productivity
• Continue leveraging technology to aid growth, drive operating efficiencies and provide digital support
• Maximize value creation through various commercial and financial levers as well as changes to the Corporation's surplus distribution policy