The investors who have been waiting for LIC’s initial public offering (IPO) have received some exciting news. The government has submitted a draught document to the Securities and Exchange Board of India (SEBI) for the LIC IPO.
The government submitted a draught document for the LIC IPO to market regulator SEBI on Sunday. In March, the IPO is slated to enter the capital markets. The government plans to sell more than 31 crore LIC equity shares, according to a draught Red Herring Prospectus (DRHP) filed with SEBI.
By March, you could be able to invest in the stock market.
“DRHP for LIC’s IPO has been filed with SEBI today,” Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), tweeted. By March, the government hopes to have Life Insurance Corporation (LIC) listed on stock exchanges.
This is a plan for policyholders only.
Anchor investors will receive a part of the IPO. In addition, policyholders will be entitled to up to 10% of the LIC’s initial public offering (IPO). The LIC IPO is significant for the government because the government’s disinvestment objective for the current fiscal year is expected to be missed by Rs 78,000 crore.
The world’s third-largest life insurance firm
Through the privatization of Air India and the sale of its stake in other PSUs, the government has raised roughly Rs 12,000 crore so far. In 2020, LIC had a domestic market share of about 64.1 percent. According to Crisil, LIC is the world’s third-largest life insurance business in terms of premiums.
The market share of LIC is 64.1 percent.
According to the report, LIC’s market share was 100% in the pre-2000 era but has since declined to 71.8 percent in 2016. LIC’s market share will drop to 64.1 percent in 2020.
