Bankers’ bids will be invited for LIC’s IPO. For this, talks are being held with institutional investors. This IPO may launch by January 2022
LIC IPO
Everyone is eagerly waiting for the launch of LIC IPO in the market. For this, the government has also intensified its preparations. It is believed that bids can be invited from merchant bankers this month. It is believed to be the biggest IPO in the country. According to an official statement, the budget amendments to the LIC Act have been notified and the actuarial firm will work out the underlying value of the life insurer in the next few weeks.
The official said that the underlying value of LIC will be worked out in the next few weeks. In the underlying pricing mechanism, the present value of insurance companies along with the future profits are added to its net asset value (NAV). Bids will be invited for the appointment of merchant bankers in the next few weeks. Negotiations are going on with the institutional investors regarding this.
IPO may come by January next year
According to sources, the IPO is expected to get regulatory approvals by the end of November. LIC’s IPO may come by January 2022. It is believed to be the biggest IPO of the country till date. The government wants to sell stake in LIC to meet the budgetary deficit. Finance Minister Nirmala Sitharaman had mentioned the IPO of LIC during the Union Budget for the financial year 2020-21. Up to 10 percent of the issue of LIC will be reserved for the policyholders.
LIC’s assets are 32 lakh crores
According to the annual report of LIC, in the financial year 2019-20, the total estimated assets of LIC were around Rs 32 lakh crore or $ 439 billion. LIC has a share of about 69 per cent in the life insurance market.
extended tenure of chairman
Before the LIC IPO, the central government has increased the retirement age of the chairman of Life Insurance Corporation of India (LIC) to 62 years. For this amendment has been made in the Life Insurance Corporation of India (Employees) Regulations, 1960. It is proposed to bring LIC’s initial public offering i.e. IPO by the end of the current financial year. According to the notification issued by the government on June 30, 2021, the changes made in the rules will be called Life Insurance Corporation of India (Employees) Amendment Rules.
Also read: Opportunity to buy a house cheap! Air India will auction properties to meet the loss, online bidding will be held on July 8-9
Mutual Fund: You can create crores of funds by saving 500 rupees, this work will have to be done for investment
.