LIC is India’s largest insurance company that has assets of over Rs 34 lakh crore with joint-ventures in Bahrain, Kenya, Sri Lanka, Nepal, etc
As per reports, the Life Insurance Corporation (LIC) is likely to announce its initial public offering (IPO) in the second half of FY2021. The IPO is set to become one of the biggest IPO’s the country has ever seen and it expects to raise around Rs 80 -90 crores at once.
This has come after the government planned to raise Rs 1.75 lakh crores from a privatisation program by March 2022 according to a report by Reuters.
Overall ten investment banks like Goldman Sachs, Citigroup, etc have been listed to look after the IPO. A panel has been formed to decide the size of the stake that will be sold which will not be more than 10 per cent of its stake in LIC.
LIC also plans to get listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Details like the price band, the grey market premium, exact issue size and face value of the IPO are yet to be revealed by the company.
LIC has always had a robust performance and has set a precedent of growth and highest recorded income and above everything, it is also a debt-free company as of FY21. These factors present the company in good light and who doesn’t want to invest in something that guarantees you returns.
For the unversed, LIC is India’s largest insurance company in the country and has assets of over Rs 34 lakh crore. With subsidiaries in Singapore, it also has joint-ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.