LIC Solely Subscribes Adani Ports’ ₹5,000 Cr Bond Issue in Exclusive Deal

LIC has fully subscribed to Adani Ports and Special Economic Zone's ₹5,000 crore bond (approx $584.5 million USD) issue was a privately negotiated said a report by Business Standard.

This transaction, meaning LIC was the sole investor, and no other bids were received. The bonds have a 15-year tenure with a 7.75% coupon rate, making it Adani Ports' largest-ever rupee-denominated bond issuance.

This marks Adani Ports’ biggest-ever rupee-denominated bond issue and its first 15-year bond sale.

Notably, the 7.75% coupon rate was priced 126 basis points above comparable government securities, reflecting strong investor appetite.

The Business Standard report cited a source aware of the development, who said “There was only one bid from LIC and it was a pre-approved, privately negotiated transaction. No other bids were received, and since it wasn’t a market-based issuance, there was no green shoe option either.”

The source further added that it’s possible that the company was concerned about having to offer a higher coupon rate had it come to the broader market.

The funds raised will be used for refinancing existing debt and capital expenditure for port infrastructure development 12. This move aligns with Adani Ports' strategy to shift towards longer-term financing to reduce borrowing costs.

LIC’s exclusive participation signals strong institutional confidence in Adani Ports, reinforcing its role as a major player in India’s corporate debt market. LIC has been expanding its corporate bond investments with ₹80,000 crore invested in FY25, a 30% increase from last year.

By securing 15-year funding at 7.75%, Adani Ports reduces reliance on short-term, high-interest debt, improving financial stability. The company is actively working to extend debt maturity, lowering its net debt-to-EBITDA ratio, which stood at 1.78x as of March 31, 2025.

Adani Ports’ stock has been rising for six consecutive sessions, reflecting positive investor sentiment following the bond issuance.

Denied by a Machine: Court Overrules Biometric Glitch Blocking Candidate’s Job

Biometric Verification Isn't Infallible: MP High Court Upholds Human Rights Over Tech Errors

The Madhya Pradesh High Court recently ruled that a person's legal and fundamental rights cannot be denied due to biometric verification failure. Justice Subodh Abhyankar emphasized that a machine's inability to recognize someone shouldn't override their identity or rightful claims.

The case involved Vinod Kumar Meena, whose job application at Life Insurance Corporation of India (LIC) was rejected after biometric mismatches during onboarding. Meena had successfully cleared the examination, and his biometrics were verified during entry by Tata Consultancy Services (TCS). However, a mismatch occurred during exit verification. Despite being shortlisted, his biometric verification failed again during document verification, leading to his rejection.

The court observed that while biometric verification is essential for ensuring a fair selection process, it is not always reliable. Justice Abhyankar stated that procedure should serve justice, not dominate it, and ruled that a person's identity should not be determined solely by a machine. Instead, identity verification should be conducted using official documents like Aadhaar Card, PAN Card, driving license, and passport.

LIC was directed to verify Meena’s identity through his documents and issue his appointment letter within four weeks.

This ruling sets a significant precedent in cases where technical failures impact fundamental rights.

Similar case involving biometric technology was observed in the United Kingdom in a case involving the UK Home Office, where a biometric mismatch led to the wrongful denial of a visa application. The court ruled that biometric errors should not be the sole basis for rejecting an applicant and ordered a review using alternative identity verification methods.

In United States, a federal court ruled against a state agency that denied unemployment benefits due to facial recognition failures. The court emphasized that biometric systems are prone to errors and cannot override documentary evidence proving identity.

Infosys to Build LIC’s New NextGen Digital Platform

Infosys has sign a deal with the Life Insurance Corporation of India (LIC) to drive its digital transformation through the DIVE (Digital Innovation and Value Enhancement) initiative. This collaboration aims to create a NextGen Digital Platform that will deliver seamless omnichannel engagement and hyper-personalized experiences for LIC's customers, agents, and employees.

Infosys was selected by LIC for its extensive experience in executing large-scale digital transformation projects and its deep expertise in the banking, financial and insurance sectors.

Infosys will leverage its AI capabilities from Infosys Topaz and cloud services from Infosys Cobalt to enhance LIC's operational efficiency and customer experience. This initiative marks a significant milestone in LIC's digital journey, aiming to provide innovative and improved offerings to its vast customer base.

LIC’s new NextGen Digital Platform will also serve as an open platform, enabling swift integration with FinTech companies and Bancassurance partners.

Leveraging AI and data analytics, LIC aims to offer personalized services and products tailored to individual customer needs. By implementing Robotic Process Automation (RPA) and advanced data analytics, LIC is streamlining its processes, reducing manual effort, and improving overall efficiency.

Shri Siddhartha Mohanty, CEO & MD, LIC, said, “Our collaboration with Infosys marks a significant milestone in our digital transformation journey. It will not only enhance our operational capabilities, but also enable us to cater to our vast customer, agent and employee base with newer, more personalized experiences. We are committed to leveraging the latest technologies that Infosys has to offer, including Cloud and Enterprise AI, to drive innovation and improve our offerings.”

Salil Parekh, CEO & MD, Infosys, said, “LIC is a name that resonates across generations of Indians and we are delighted to collaborate on their transformation journey. By leveraging Infosys’ extensive experience in digital transformation initiatives and prowess in AI and Cloud, we aim to equip LIC with a robust digital infrastructure that will deliver superior customer engagement, enhance operational efficiency and enable rapid market responsiveness. Through this collaboration, we are confident that LIC will be uniquely positioned to offer unparalleled service and value to their stakeholders.”

Infosys has been involved in several notable projects within the insurance sector, leveraging its expertise in digital transformation and advanced technologies.

Infosys partnered with AXA XL to enhance their digital capabilities, focusing on improving customer experience and operational efficiency through AI and data analytics. Infosys worked with Prudential to modernize their IT infrastructure, implementing cloud solutions and advanced cybersecurity measures to ensure data protection and compliance.

Besides, Infosys collaborated with MetLife to develop a digital platform that integrates various customer touchpoints, providing a seamless and personalized experience for policyholders.

Infosys also assisted Swiss Re in implementing blockchain technology to streamline reinsurance processes, ensuring transparency and reducing administrative overhead.

Life Insurance Corporation of India Files for Biggest Indian IPO

With an embedded value of Rs 5.4 trillion, LIC files for the biggest IPO

India’s largest asset manager, LIC files for its IPO

Life Insurance Corporation of India (LIC), Country's largest life insurer with a market share of 64.1 percent in terms of premiums, has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO).

The issue with a face value of Rs 10 each per equity shares will be a comprehensive offer-for-sale (OFS) of up to 316,249,885 equity shares by the President of India through the Ministry of Finance, Government of India ("Selling shareholders"). The offer also includes not more than 5% reservation for its eligible employees and not more than 10% for its policyholders.

LIC was created on September 1, 1956, when 245 private life insurance companies in India were merged and nationalised. From its founding till 2000, it was India's only life insurance. Based on its size, market relevance, and domestic and global interconnection, IRDAI classified it as a Domestic Systemically Important Insurer ("D-SII") in September 2020.

Adjusted net worth ("ANW") and Value of in-force business ("VIF") are the components that make up embedded value, with ANW consisting of Free surplus ("FS") and Required capital ("RC"). As of September 30, 2021 the embedded value of LIC is Rs 5.40 trillion.

According to Brand Finance report, LIC’s brand is the third strongest and tenth most valuable worldwide insurance brand. The present worth of earnings tied to a brand's reputation is the value of a brand.

LIC had an asset under management (AUM) of Rs 39.74 trillion as of September 30, 2021, which was more than three times the total AUM of all private life insurers in India, approximately 16.2 times the AUM of the second-largest player in the Indian life insurance industry, and 1.1 times the entire Indian mutual fund industry.

In terms of market share, LIC had the highest gap by life insurance Gross Written Premiums (GWP) in relative to the second-largest life insurer in India as compared to the market leaders in the top seven markets globally in 2020 for the other players and in Fiscal 2021.

The insurance behemoth had a 66.2 percent market share in terms of New Business Premium (or NBP), 74.6 percent in terms of number of individual policies issued, 81.1 percent in terms of number of group policies issued, and a 55 percent market share in terms of individual agents as of September 30, 2021.

The 282.58 million in-force policies under individual business being handled in India as of September 30, 2021, demonstrate the trust in the LIC brand.

In addition, LIC has a sizable market share in health insurance and annuities. In terms of GWP, it had a market share of 46.9% and 53.6 percent in health insurance supplied by life insurance carriers in India for Fiscal 2020 and Fiscal 2021, respectively.

With 32 Individual and 10 group products, LIC caters to a wide range of market segments. Individual products include microinsurance and items specialised to certain market niches, such as women's and children's products.

In India, LIC issued approximately 21 million individual policies in Fiscal 2021, accounting for nearly 75% of new individual policy issuances. The industry's second-largest player, with a 5.9% market share in Fiscal 2021, issued 1.66 million individual policies.

As of September 30, 2021, LIC had 2,048 branch offices and 1,554 satellite offices across India, covering 91 percent of the country's districts. In addition to its life insurance business in India, it has branches in Fiji, Mauritius, and India.

The company has subsidiaries in Bahrain (with operations in Qatar, Kuwait, Oman, and the United Arab Emirates), Bangladesh, Nepal, Singapore, and Sri Lanka in the life insurance industry.

LIC's total income increased by 9.00 percent to Rs. 703,732.43 crore in fiscal 2021, compared to Rs. 645,640.91 crore in fiscal 2020, owing to higher net earned premiums and investment income, while net profits increased by 9.73 percent from Rs. 2710.48 crore in FY20 to Rs. 2974.14 crore in FY21. Total income for the six months ended September 2021 was Rs 336,972.92 crore, with profit after tax of Rs 1,504.01 crore.

The Indian life insurance industry generated a total premium value of Rs. 6.2 trillion in fiscal 2021, up from Rs. 5.7 trillion in fiscal 2020. The industry's total premium climbed at an 11 percent compound annual growth rate(CAGR) in the five years leading up to Fiscal 2021. CRISIL, a credit rating agency, forecasts a 14-15 percent compound annual growth rate (CAGR) over the following five years, taking the total to Rs. 12.4 trillion by Fiscal 2026.

Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers to the issue.