Friday, March 29, 2024
HomePersonal FinanceLIC IPO: Government will invite bids from merchant bankers this month, know...

LIC IPO: Government will invite bids from merchant bankers this month, know details about LIC worth Rs 32 lakh crore

The government has taken a step forward for LIC IPO. For this most awaited IPO, the government can invite bids from merchant bankers this month. Regulatory approvals are expected by the end of November. Up to 10 percent of LIC’s IPO will be reserved for policyholders.




New Delhi . The government has taken a step forward for LIC IPO. For this most awaited IPO, the government can invite bids from merchant bankers this month. An official gave this information. In January this year, the Department of Investment and Public Asset Management (DIPAM) had appointed insurance company Milliman Advisors LLP India for the embedded value of LIC.

Budget amendment notified

An official said that the budget amendments to the LIC Act have been notified. Milliman will work out the underlying value of LIC in the next few weeks. In the underlying value system, the present value of the insurance company as well as the future profits are added to its net asset value (NAV). “We will be inviting bids for the appointment of merchant bankers in the next few weeks,” the official said. Negotiations are going on with institutional investors regarding this.”

Approval by November

We hope to get regulatory approvals by the end of November, the official said. Up to 10 percent of the issue of LIC will be reserved for the policyholders. LIC’s IPO may come by January 2022. It is believed to be the biggest IPO of the country till date.

government wants to sell stake in LIC to bridge the budgetary deficit. But it has to equate criticism from opposition parties. LIC’s IPO was announced by Finance Minister Nirmala Sitharaman while presenting the Union Budget for the financial year 2020-21.

Valuation higher than RIL

Its valuation for LIC’s listing could be $261 billion. That is, it will be bigger than the country’s most valuable company Reliance Industries (Reliance Industries). Right now the market value of Reliance is around $199 billion.

LIC’s assets

According to the latest annual report of LIC, in the financial year 2019-20, the total estimated assets of LIC are around Rs 32 lakh crore i.e. $ 439 billion. LIC’s share in the country’s life insurance market is about 69 percent. According to sources, discussions are going on about LIC’s listing plan and it may still change.

A million more employees

, according to data from 2020, the LIC 1 million employs more than 14 employees. LIC is one of the largest employers in the country.

Subsidiaries of

LIC – LIC Housing Finance
LIC International Ltd
LIC Cards Services Ltd
LIC Mutual Fund Ltd
LIC Pension Fund Ltd

Industrial Development Bank of India

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments