LIC IPO: Officials of Life Insurance Corporation of India (LIC) in a recent interaction with global investors indicated that LIC may submit draft paper for its IPO with market regulator SEBI in the third week of January.
Earlier, the central government has also said on several occasions that LIC’s IPO will be brought by the end of this financial year and work is going on continuously. The central government also rejected the claims that the IPO can be brought up at any time after this stipulated time. Let us know what information has been revealed about LIC’s IPO so far-
1. Draft paper can be submitted in the third week
LIC can file a draft paper (application) for its proposed IPO with SEBI by the third week of January. According to a report in the Times of India newspaper, LIC officials have indicated this in conversations with global investors. Finance Ministry officials have been saying for the past several months that the listing of the IPO will be completed before the financial year 2022.
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LIC officials have also said in their interactions with investors that the company has been focusing on products like pension, annuity, health insurance and ULIPS. Officials have also told that the focus of the company will be on products like bancassurance. Also, the company will insist on hiring more young employees, so that its demographics can change.
2. Valuations may remain lower than expected
According to another media report, the valuation of LIC’s IPO will not be as much as is being estimated. According to the report, the government can value LIC at a much lower price than expected. The report said that the valuation of LIC will be in lakhs of crores but it will be in single digits. That is, its valuation will be less than Rs 10 lakh crore.
3. 10% reserve for policyholders
At least 10 percent of LIC’s IPO will be reserved for policyholders. LIC has said that to participate in any IPO of LIC, the policyholder should check whether the PAN information given in the record is correct or not. He should update the PAN details. If a policyholder does not currently have a valid demat account, he should plan to open one at his own expense. The corporation clearly stated that the policyholder will bear the cost of opening a demat account and updating PAN.
4. Appointment of 10 Merchant Bankers
Cyril Amarchand Mangaldas has been appointed as the legal advisor for LIC’s IPO. Apart from this, the government had appointed 10 merchant bankers for this IPO last month. These include the names of Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. He will manage the country’s biggest IPO. Apart from this, some more banks have also been appointed to manage this IPO.
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