LIC’s much-awaited public offering of $8 billion is likely to open on 11 March 2022 for anchor investors. Other investors can start bidding after a few days.
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How Is LIC Prepping Up for Its IPO?
The IPO of LIC (Life Insurance Corp) can get regulatory approval by March’s first week. A suggestive marketing price band will be finalised ─ deal discussions remain private. This IPO will examine the depth of India’s capital market, wherein equity deals amounting above some billion dollars are rare cases.
It’ll be interesting to witness how LIC’s new equity deals attract investors under a situation where several entities that listed the previous year trading beneath offer prices. The main concerns relate to sudden interest rate increases by central banks and lofty valuations.
The IPO launch schedule of LIC may change amidst efforts to meet the specified timeline. On Sunday, 20 February 2022, LIC filed a DRHP (Draft Red Herring Prospectus) with SEBI to raise around $8 billion from the sale of 5 per cent of the government’s stake.
The company can start issuing shares by the middle of March. This upcoming initial public offering has hit stocks in other listed insurers. This is because investors are cutting their holdings to keep space for the insurance giant.
Know About LIC!
Life Insurance Corporation of India is the biggest life insurance company in India, with its headquarter in Mumbai. It comprises an asset value of more than 2,529,390 crores. It was set up on 1 September 1956 while the Life Insurance of India Act was passed.
The entity was created after the merger of more than 245 provident societies and insurance companies. It facilitates a variety of life insurance policies such as term insurance, child plans, pension plans and ULIPs. Its motto statement is ‘Yogakshemam Vahamyaham’, denoting that people’s well-being is its responsibility.
The 66-year-old LIC has been overpowering the insurance industry with above 280 million policies. The entity has emerged as the 5th largest global insurer with respect to the collection of insurance premiums in the year 2020. Further, it is going to be the 3rd biggest insurance IPO worldwide.
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Frequently Asked Questions
1. What is the agent count for LIC?
At present, LIC functions with 42 banks, 114 brokers, 109 referral agents, 342 corporate agents and 1,537,064 individual agents.
2. What is the count of LIC offices in the country?
LIC has 8 zonal offices, 1,381 satellite offices, 113 divisional offices and 2,048 computerised branch offices. Its head office is in Mumbai.
3. Who are the advisors in the LIC IPO?
Goldman Sachs, JPMorgan, Nomura, Citigroup, SBI Caps, along with 5 other international and domestic investment banks, are managing the LIC IPO.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.