The government’s finance chief and chief executive stressed on Friday that the planned IPO (Initial Public Offering) should not be considered privatization and that it would not have any impact on the state-owned life insurer. The long-awaited IPO of the Indian Life Insurance Company (LIC) is becoming increasingly likely. However, “the government will offer a limited number of shares in the LIC IPO, which may be subject to regulatory approval by the Securities and Exchange Commission (SEC). The government has already begun planning for the IPO of LIC, “he added, according to a statement.
The LIC Act of 1956 is also expected to require some changes. The government is required to complete a number of activities, including deciding on the timing of the IPO, redrafting the financial statements and finalizing the details of the IPO, according to the statement. In addition, the government must also amend the LIC Act 1956 to complement this timetable, “a statement from the Treasury said.
Given that the pre-IPO process has now begun, we must wait to see whether the government can meet the target launch date. Among the exemptions envisaged is a proposal to allow the Indian Government to divest a stake in LIC by transferring its shares to the promoter as paid-in capital. The plan to attract a lot of foreign capital requires governments to sell the LIC IPO.
Let us hope that it will be of great use and let us look at the potential of the LIC IPO as a source of capital for the state and the private sector.
LIC India’s IPO application can be done through net banking, just as any stockbroker trading account uses UPI and any bank uses ASBA online. It can also be made available to all stockbrokers, brokers and trading accounts using UPI, as well as any other bank.
If you are an LIC employee, you can apply for an LIC IPO through your bank account via UPI, ASBA online or any other online banking platform. LIC staff can also apply through their bank accounts in the same process.
The final determination of the basic allocation for the LIC IPO will be made by the Securities and Exchange Board of India (SEBI) and the Department of Financial Services (DFS). The allocation of all allocated shares will be credited to the Demat account and the government will decide whether to sell shares when the embedded value of the LIC is determined. The chances of receiving LIC IPO allocations are higher if investors, LIC policyholders or not, compete in the general category and bid higher. As for the size of an LIC offer, Pandey said the number of shares to be offered in an IPO would depend on the embedding value and size of the offer.
Since the IPO of LIC can raise money at any time, particular attention will be paid to asset sales. If we are going to go public and get the most value out of an IPO, we need to focus on other investors who may want to participate in the share sale.
The LIC IPO in 2020 will provide retail investors and employees with the opportunity to invest in the company over the long term and to quickly make daily profits. Investment bankers are talking about a bull market because of the timetable for the IPO. The IPO of LIC should provide investors with the opportunity not only to invest in the long term but also to make gains in the price, “said a statement from LIC.
Market participants are fairly optimistic about the LIC IPO, saying that it could be the IPO of the decade, similar to Saudi Aramco’s. If the reports are to be believed, the initial public offering may have been the largest in the world, which market participants say is larger than the initial public offering worldwide. Given the size of LIC’s IPO, it will be a big moment for the company to open itself up and reveal many of the secrets that LIC has held deep in its chest.
Of course, LIC would not be the first publicly traded life insurance company in India to have a major IPO, but it could be India’s largest market capitalization company. When it goes public, it will increase its weight in emerging markets and, when it goes public, could potentially be one of India’s “largest” market capitalization firms. Given that LIC is India’s second-largest life insurance company when it is listed, and the third-largest in terms of market capitalization, it is likely to become the country’s largest, beating even companies like TCS and RIL, according to analysts.
It is estimated that the sale of a 10 percent stake in LIC through the government’s IPO channel will raise around 15,400 crore raised through Coal India’s mega IPO. LIC’s IPO could be the mother of all IPOs, and it is expected to be higher in terms of the amount offered, even if the government decides to dilute it. The sale of LIC shares, which was launched in 1956, is also likely to have been the largest IPO in Indian history, as LIC entered the stock market with paid-in capital – a $1.5 billion equity offering to the public last year, according to a report in The Times of India. It is estimated that the LIC IPO will bring the government a total of about 12,000 crone, or about $2.4 billion.
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