LIC IPO coming! The wait is finally over. Life Insurance Corporation of India could file a prospectus in the final week of January for what would be the nation’s biggest initial public offering.
The mega LIC IPO
According to reports, the embedded value of LIC is likely to be more than Rs 4 lakh crore and its market value could be about four times that amount.
To get the maximum output from LIC’s IPO, government will also be reviewing the rules on foreign direct investment and may even amend a few to ensure even investors from abroad can participate.
A look back and ahead
LIC was established on September 1, 1956 by an Act of Parliament. LIC today is competing with 23 private insurers. Even after 20 years of competition, it is continuing to dominate the market with a share of around 66% in premium income and 75% in number of policies. For the financial year 2021, LIC earned a total premium income of Rs 4.02 lakh crore (both new business and renewal).