Mukesh Ambani’s Reliance will no longer be the country’s largest company as soon as LIC’s IPO comes, what do the figures say after all?
The central government has started preparing to bring LIC’s IPO, which can prove to be Asia’s biggest IPO. It is estimated that Mukesh Ambani’s company will not be the largest company in the country coming LIC’s IPO.
Not only the country but Asia’s biggest IPO is about to come with LIC. Its preparations have also been started by the government, but the interesting thing that has come out with the figures is that as soon as LIC’s IPO comes, the country’s largest company will be snatched from Mukesh Ambani’s Reliance. That crown will come to LIC. According to a Bloomberg report, proposals can be sought from investment banks this month related to the IPO of the government LIC. It has also been said in the report that invitations can also be sent from the government in a few weeks. According to the information, a decision will be taken on this by March 2022.
According to Prakhar Sharma of Jefferies India, after the IPO of LIC, the valuation of the company can be estimated in the range of 19 to 20 lakh crores. It is clear that as soon as the company is listed in the market, it will become the largest company in the country. At present, the market of Reliance is 14 lakh crores and is the largest company in the country by market cap. At the same time, LIC’s total assets are more than $ 439 billion and the company’s market share in the life insurance sector is about 70 percent.
Sold its entire stake in 8 companies: LIC is taking many economic decisions by bringing its IPO. According to the information given by Prime Database, in the last quarter of FY 2020-21, LIC sold its entire stake from 8 companies. LIC’s share in the total market value of public traded companies is 3.66 per cent, which is at life time low. Between January and March, there was a rally in the stock market and the Nifty had seen a rise of 5 percent, after which profit-booking was seen from the Nifty side.
Broken relationship with these companies
- Reduced the stake from 4.20 percent to zero with the Central Bank of India.
- Hindustan Motor completely eliminated this 3.56 percent stake.
- Completely zeroed out the 3.22 per cent stake in Union Bank of India.
- Terminated the relationship by selling 1.94 percent stake in Jyoti Structures.
- Sold its entire 1.69 percent stake in Morpen Lab.
- Selling the entire 1.66 percent stake in RPSG to zero.
- Sold 1.50 percent stake in Insecticide India.
- 1.50 percent stake in Dalmia Bharti Sugar which has come down to zero.
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