In fact, the government has set a target of disinvestment of Rs 1.75 lakh crore in its various assets. LIC’s IPO is also a part of the same disinvestment.
LIC IPO: Initial Public Offering ie IPO (Initial Public Offering) is a great option to earn good profits in less time and less investment. For low risk and high gain, most of the investments focus on IPO.
And now the focus of the stock market industry is on the IPO of the country’s largest economy public company Life Insurance Corporation of India ie LIC (Life Insurance Corporation of India). LIC’s IPO will come by the first quarter of next year. According to the information, the government has set a target of raising 90 thousand crore rupees through LIC IPO.
Before LIC IPO, gather some information about LIC. Life Insurance Corporation of India, with more than one lakh employees, more than 12 lakh agents, about 30 crore policy holders and more than 2000 offices across the country, controls more than two-thirds of the insurance market (life insurance).
The government is selling some stake in LIC, for which preparations are on to bring an IPO. Looking at the business of LIC, market experts say that it will be the biggest IPO in the insurance industry and the second largest IPO in the world.
Why is the government selling stake (LIC Disinvestment)
Actually the government has set a target of disinvestment of Rs 1.75 lakh crore in its various assets. LIC’s IPO is also a part of the same disinvestment. And this target cannot be met without disinvestment in LIC.
Benefit to policy holders (LIC Policy Holders)
When this will be the biggest IPO of India and the eyes of the investors of the whole country are on it, then surely this IPO will prove to be no less than the treasure of a Kubera. Especially those investors who have a policy in LIC will benefit more from this.
Because the government has already announced that whenever LIC IPO opens, 10 percent of its shares will be kept in reserve for policyholders. For this, the government has also had to amend the law (LIC Act 1956) to keep the policyholders of LIC at par with the employees of LIC. After this move of the government, LIC policyholders can also get 10 percent of the total share at a discount of 10 percent.
When will LIC IPO launch date
According to Krishnamurthy Subramaniam, Chief Economic Advisor, Union Finance Ministry, LIC’s IPO will come in this financial year. That is, in the first quarter of next year. LIC’s IPO has got the green signal of the central government.
Appointment of 10 Merchant Bankers The
government has also appointed 10 merchant bankers to manage the IPO of LIC. Bankers who have been entrusted with the management of LIC’s IPO include Goldman Sachs (India) Securities, Citigroup Global Markets India, Nomura Financial Advisory & Securities, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities and Kotak Mahindra Capital Co Ltd. Huh.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said that the government has selected book running lead managers and other advisors for the IPO.
How much can be the price band (LIC IPO Price Band) At
what price the shares will be launched in LIC IPO, it has not been decided yet. But, the market for speculation regarding the price band has been hot for a long time. Market experts estimate that the price band of LIC’s IPO could be Rs 400 to 600 per share.
