Tuhin Kant Pandey, DIPAM Secretary, stated that the IPO (Initial Public Offering) of the country’s most valued corporation, LIC, provides an opportunity for all Indians to expand their wealth.
The central government claims that small investors who put their money into the Life Insurance Company (LIC) will earn handsomely. The initial public offering, according to Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), will be advantageous for regular investors. He claims that the country’s largest financial sector institution, as well as the market’s largest investor, has been undervalued (about Rs 6 lakh crore). He said that ten investment bankers and appraisers had attempted everything they could to determine its worth.
The stock selling size is ideal.
According to Pandey, “The magnitude of LIC’s share sale is fair given present market conditions. Given the current limits, this will have little effect on capital flows. He claimed that the country’s most valued company’s IPO (Initial Public Offering) provides an opportunity for all Indians to improve their fortune. The government wants LIC to be profitable for a long time in the stock market. The Secretary of DIPAM stated, “The decision to list the company’s issue at this time was made for a variety of reasons. Market demand, market stability, low volatility, domestic capital inflows, and the company’s financial success are all factors to consider.
Read More: Special news for LIC Policyholders: the Government has Devised a strategy to Distribute “earnings”!
Preparations are being made to raise 20,000 rupees through an issue.
By selling a 3.5 percent share in LIC, the government will raise Rs 20,557 crore. The LIC, a public sector insurer, has lowered the size of its share sale to Rs 20,557 crore, which is appropriate. Its size has been established in light of current market attitudes to ensure that capital inflows are unaffected. The government also stated that it had planned to sell a 5% interest in the company in February for roughly Rs 60,000 crore at an estimated valuation of around Rs 10 lakh crore.
