LIC IPO: Too 'precious' to lower face value of India's crown jewel

LIC management can decide on stock split after listing

The Centre’s decision to not reduce the face value of shares of India's Crown Jewel — Life Insurance Corporation (LIC) — was taken to make shareholders feel they are acquiring something 'precious'.

The face value of LIC’s shares was retained at Rs 10, quoted in the draft prospectus, as it would also align the insurer’s shares with those of its private sector peers.

Even as the LIC Act was amended to “consolidate or reduce the nominal or face value of the shares”, with the Centre’s approval, it was decided to stick to the current face value of shares at Rs 10 without