Ever since our Finance Minister, Smt. Nirmala Seetharaman proposed the idea of LIC stack sale in Union Budget 2020; Life Insurance Corporation became the new talk of the town!
Government plans to launch the mega initial public offering of Life Insurance Corporation sooner rather than later. As per the sources, three companies- National Fertilizers Limited, Mishra Dhatu Nigam Ltd, & Rashtriya Chemical & Fertilizers Limited- will get disinvested through OFS (offer-to-sale) before the launch of LIC IPO.
Within the liberalized insurance market of India, Life Insurance Corporation of India continues to be the leading life insurer. Hence, to accelerate the growth of the insurance behemoth’s share sales, the government will file draft papers for LIC IPO with the Securities & Exchange Board of India (SEBI) this week.
As per the sources, the government expects to sell around a 10% stake in LIC IPO, which would garner the government $15 Billion or INR 110,000 Crores. Accordingly, the price band of LIC IPO has estimated from INR 400 to INR 600 shares, considering total capital and valuations.
Life Insurance Corporation provides covers against death, illnesses, and other saving products. In addition, the company offers numerous life insurance plans, money back plans, term life insurance, and endowment plans.
As per 2019-2020 LIC annual reports, LIC occupied a market share of 69% in the life insurance spaces. In addition, life Insurance Corporation is involved in other businesses like LIC Housing Finance, Pension Fund, LIC Mutual Funds, LIC Card Services, etc.
According to the sources, LIC’s embedded value has been finalized at more than INR 5 Trillion (USD 66.82 Billion), making it India’s largest IPO. As of November 2021, LIC has over 1.3 million individual agents in India’s life insurance market.
The upcoming IPO of Life Insurance Corporation of India is impressive in more than one way or the other. In a country where only 2 per cent of the population has access to the share market, every investor is waiting anxiously to attain the benefits of this mammoth insurer.
The LIC IPO offers retail investors and employees an excellent opportunity to invest for the long run. Therefore, the Indian government has decided to allocate a 10% of the issue size to the LIC policyholder. Also, these policyholders will receive a fair discount on the floor price of the LIC IPO.
According to many investors, the LIC IPO might create a massive impact in the world of trading. For the first time in Indian history, the largest life insurance company will go public.
Life Insurance Corporation is a top-notch insurance company in India, offering many insurance covers to generics. Renowned for its customer-centric approach, LIC has successfully achieved the tagline; LIC hain, toh bharosa hai!
The countdown has begun! The company is all set to launch IPO and rule the trading world.