LIC IPO Review details, Issue Date, Market Valuation & News
The government of India is interested in bringing an IPO which will facilitate the sale of a 10% government stake.
LIC IPO Review & Full details why Govt Is bringing IPO.
This move will list LIC at NSE and BSE stock exchanges and is being viewed as a step towards disinvestment of the government’s stake in the corporation.
With this move, the government of India is eyeing to raise funds summing between Rs. 80,000 to 1 lakh crore. The LIC IPO is being regarded as the most eagerly waited IPO listing of this decade, with investors going head over heels for information on IPO’s launch date.
According to the announcements made during the budget presentation, the LIC IPO is likely to find the public domain during the last months of the 2020-21 financial year.
The process was drastically affected due to the COVID pandemic.
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The disinvestment process has now commenced in full vigor, with the government appointing Deloitte as the transaction advisor for IPO management.
The project still has immense detailing and work left before it can be fulfilled, so there’s still ambiguity involved with exact dates.
LIC IPO Size & Valuation of the Company
The government aims to sell exactly 10% of its stake in the corporation. Roughly estimated, the valuation predicts the amount of Rs. 8 lakh crore- Rs. 11 lakh crores.
Therefore, the 10% stake estimates between Rs. 80 thousand to Rs. 11 lakh crores. The exact valuations might leave you awestruck, seeing the net worth of LIC and its nationwide presence and common man friendly modus operandi.
LIC IPO Price, Lot Size
The IPO price band can be calculated using the authentic valuation and the existing share value of its competitors belonging to the insurance industry.
The issue price is made public commonly a week prior to the IPO opening for public subscription.
LIC IPO Valuation
Some renowned analysts have made rough estimates of LIC’s valuation to lie between Rs. 8 lakhs to Rs. 11 lakh crores.
Despite these rough estimates the government will have to present the actual worth of LIC before moving the DRHP papers.
About LIC (Life Insurance Company)
Life Insurance Corporation of India (LIC) is the largest and oldest, solely government-owned insurance company, incorporated through the LIC act of 1956.
Since then LIC has been the purveyor of trust of Indian citizens for the last 63 years, striving hard to come true to its slogan of “your welfare is our responsibility”.
LIC began with an initial investment of Rs. 5 crores by the Indian government and risen exponentially since then, with the present assets of over Rs. 31 lakh crores.
LIC Key Facts
LIC has pan India presence, having headquarters in Mumbai. LIC has 8 zonal offices, 113 divisional wings, having 2048 branches, and over 12 lakh agents, as of March 31, 2020.
LIC has soared high, with it boasting of international presence, having joint venture companies/branches/full-stake subsidiaries in countries of Kenya, Singapore, Sri Lanka, Bangladesh, Nepal, Kuwait, Fiji, Mauritius, Qatar, Oman, UAE, Bahrain, and UK.
LIC offers a wide range of products, many times mixing the traditional insurance plans with special
plans, unit plans, micro insurance plans, pension plans, and health plans.
LIC has more than 289 million policyholders and a humongous base of 111979 employees as of March 31, 2019.
LIC, since the beginning, has been a profitable PSU for the government of India.
LIC has recorded a premium income of Rs. 337000 crores (a 6.08% increase as compared to last year), making a profit after tax of Rs. 2688 crores for the financial year 2019.
List of all Upcoming IPO in India
