LIC IPO: Before the IPO came, the profit of LIC increased by 258 times in the third quarter of the current financial year 2022.
LIC IPO: The country’s largest life insurance company LIC’s IPO is about to come. Before its IPO, the big news about its financial results is that in the third quarter of the current financial year 2022, its profit increased by 258 times. LIC had a net profit (Profit After Tax) of Rs 0.91 crore in the December 2020 quarter, while in October-December 2021 of this financial year, LIC got a net profit of Rs 234.91 crore.
LIC’s IPO was to come in this financial year but according to the information received, it has been postponed to the next financial year. Let us tell you that Finance Minister Nirmala Sitharaman had indicated a few days ago that due to the rapidly changing international situation after the Russia-Ukraine war, the government may reconsider the timeline of LIC’s IPO.
What is the opinion of experts regarding the delay in LIC IPO, will the government lag behind the disinvestment target by a huge margin
Due to this sharp jump in net profit of LIC
According to the information, the reason for the sharp jump in LIC’s profits was the changed policy. LIC made changes in the funds redistribution policy, due to which there was a sharp jump in its profits. If we talk about the profit of nine months, then the net profit of LIC increased by about 232 times on a yearly basis in April-December 2021. LIC had a profit of Rs 7.08 crore in April-December 2020, while in the first nine months of the current financial year, there was a profit of Rs 1,642.78 crore.
IPO Alert! Reports of LIC IPO getting approval from SEBI, government to sell 31 crore equity shares
IPO has got SEBI nod – reports
According to media reports this week, LIC’s IPO has been approved by market regulator SEBI. Although its official announcement is yet to be made. According to the draft red herring prospectus (DRHP) filed with the market regulator, the government will sell over 31 crore equity shares under LIC’s IPO. A part of the issue will be reserved for anchor investors. Also, up to 10 per cent of the issue size will be reserved for policyholders. Let us tell you that DRHP i.e. IPO proposal was submitted to SEBI on 13th February on behalf of LIC.
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