Potential investors in LIC's giant IPO fret over govt control of insurer

Potential conflicts of interest issues are taking centre-stage in the IPO roadshows that began last week and are expected to go on till the end of the month

Prospective investors in Life Insurance Corporation (LIC) of India's $8-billion initial public offering (IPO) are seeking assurances from company management that it will not sacrifice their interests to meet the goals set out by the government, its controlling shareholder, said sources.

In virtual roadshows for India's biggest-ever public listing, LIC management and the IPO bankers have been peppered with questions about the insurer's past investments and their quality, four people with knowledge of the matter said.

LIC has, in recent years, been a key buyer of shares in state-owned firms sold off by New Delhi, often bailing out less-than-successful public issues of