LIC’s IPO is coming in March. This week the government will file draft papers with SEBI for this. There is good news for the people having LIC policy. It is expected that 10 percent of this IPO will be reserved for them. This will increase their chances of getting shares. Apart from this, he is also expected to get some discount in the price per share.
LIC will continue to be owned by the government
At present, the ownership of LIC is with the government. It is the largest life insurance company in the country. The government wants to raise around Rs 90,000 crore by selling stake in this company. This will help the government to achieve the disinvestment target of the current financial year. Even after the IPO, the ownership of LIC will continue to be owned by the government. As per the law, the government’s stake in LIC cannot be less than 51 per cent. Apart from this, the government cannot sell more than 25 percent of its stake in LIC during 5 years.
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Has the highest market share
LIC has a market share of 64.1%. According to a report by Crisil, it is the largest life insurance company in the country. Its return on equity is also the highest at 82 per cent. It is the third largest insurance company in the world in terms of life insurance premiums. If we talk about market share, then there is no other insurance company in the world whose market share is 64 percent.
The highest return on equity in the world
The CRISIL report states that LIC’s 82 per cent return on equity is much higher than other major insurance companies in the world. Chinese insurer Ping has a return on equity of 19.5 per cent, while that of Aviva is 14.8 per cent. China Life Insurance has a return on equity of 11.9%.
New Business Premium Growth Superb
LIC’s profit after tax stood at Rs 1,437 crore in the first half of the financial year 2021-22. Its profit stood at Rs 6.14 crore in the same period a year ago. LIC’s new business premium grew at 554.1 per cent in the first half of this financial year. It is the sixth largest insurance company in the world in terms of total assets with $522 billion.
The country’s largest listed company will be
According to London-based Brand Finance, the market value of LIC is estimated to reach 43 lakh crores this year. It is expected to increase to Rs 58.9 lakh crore in the next five years i.e. by 2027. In this way, it can remain the largest company in the country for the next several years. At present, the valuation of the country’s largest company Reliance Industries is more than Rs 16 lakh crore. TCS is second in this regard, with a valuation of more than Rs 14 lakh crore.
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