What is LIC’s motivation for going public, and how huge will the IPO be?

The country’s largest life insurance firm is going public. The Life Insurance Corporation of India (LIC), also known as the Life Insurance Corporation of India, is planning to go public in March. There are many unknowns and uncertainties surrounding this move, including why is LIC going public. How big will the IPO be, how many shares will be available, and how will policyholders be able to claim those shares?

On the 19th of June 1956, the parliament of India passed an act to create the life insurance corporation of India LIC. An investment corporation aimed at making life insurance reasonable and affordable for all Indians over the years this corporation became a household name it grew into an insurance behemoth with a strong grip on the market despite the entry of several private players even today let’s market share stands at 64.1 in terms of premiums making it the biggest life insurer in the country.

If these feats weren’t enough LIC is now set to hit another big milestone the company has filed its draft red herring prospectus DRHP for an initial public offering or IPO. if you’re someone who doesn’t understand how this works here’s a detailed breakdown of what’s about to happen LIC is going public meaning its shares will soon be up for sale the state-owned company is also offering millions of its policyholders a chance to invest when is this happening most likely in march 2022 that’s when the IPO is expected to be launched why is this happening to bolster the
government’s coffers drained by the pandemic.

India has recorded its worst recession since independence due to COVID-19. LIC IPO will give the government some much-needed financial relief so how many shares will the government sell. The government of India owns a hundred percent stake in the insurer it will sell five percent of its stake in the IPO and up to ten percent of the shares will be reserved for policyholders how can policyholders claim this offer by making their bid under the policyholder’s quota all they have to do is link their pan
card details with life insurance policies.

So how big will this IPO be? the biggest ever to hit the Indian stock markets reports say the listing is expected to raise 65,000 crores making LIC the biggest listed financial service provider in India how will the company benefit from IPO documents filed with Sebi indicate that LIC may be valued in excess of 12.5 lakh crore and making it more valuable than all other listed government-owned entities.

But a few uncertainties remain over this move such as questions on whether investment decisions will be made by the LIC management without any government interference it’s also unclear if LIC will be able to retain its market share given the increased competition for younger consumers from new and take savvy entrance in the market.

Madhuri Shetty

Madhuri Shetty is an Author of CelebCluster who likes to explore new things. Madhuri covers Entertainment, Sports, and Indian Politics, also she's been studying Celebrities' Careers and Lifestyles.

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