How your life insurance premium bails out PSU IPOs
Business Today

How your life insurance premium bails out PSU IPOs

Life Insurance Corporation (LIC) once again prevented a public sector company's IPO from crashing into failure when it invested between Rs 2,900-3,000 crore in the Rs 4,230 crore issue of Hindustan Aeronautics Limited (HAL) to ensure that the IPO was fully subscribed.
Prior to the LIC investing the money it collects as premium for the life insurance policies it sells, the HAL issue was subscribed less than 50 per cent. This, however, isn't the first time, nor does it look like it will be the last, when LIC has been arm-twisted to save the government's face on the divestment market.
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