MUMBAI: LIC is often blamed for being an arm of the government whenever it bails out a state-run company with capital investment, or invests in a social project. But it has hit the jackpot with its investment in the National Stock Exchange, which will fetch the insurer 175 times the money it had invested, perhaps beating many private equity’s returns by miles. Its investment of about Rs 40 crore, after buying and selling in the unlisted market in the NSE, will be worth Rs 7,000 crore, if the IPO fetches the expected market value of Rs 45,000 crore. LIC’s spokesperson did not respond to an email. The numbers are arrived at by putting together the information reported earlier. NSE has filed a draft red herring prospectus earlier this month to raise Rs 10,000 crore through an initial public offering. This is one of the biggest IPOs in six years, and the offer gives an opportunity to existing shareholders to exit. LIC is the largest shareholder in NSE. LIC made returns on its investments in NSE, when the company’s board had approved payment of interim dividend at 795%, a bonus issue of one share for every 10 shares held. “We had bought NSE shares over the years,” said an LIC executive. LIC had first bought a stake in NSE in 1992 by subscribing to the memorandum of association. It bought 1.4 million shares in 1992 at Rs 10 per share, and further bought 2.1 million shares in 1994, and then another 2.1 million in 1999, according to the prospectus. Later in 2008, it had sold stake in NSE for Rs 3,200 a share. It again bought 2% in 2016 for Rs 3,900 a share. Now, LIC owns 12.5% in NSE.