LIC IPO: Life Insurance Corporation of India (LIC) has filed its DRHP with SEBI for its public offering, which will be entirely an offer for sale. Here's a SWOT analysis for investors to consider
Life Insurance Corporation of India (LIC) filed its preliminary papers for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) on Sunday. The government is looking to sell a 5 percent stake through the LIC IPO, according to the draft red herring prospectus (DRHP).
LIC IPO will be entirely an offer for sale (OFS) of 316,249,885 shares by the shareholder, President of India, acting through the Ministry of Finance. At present, the government owns 100 percent in stake in the insurance company, whose total equity is around 632 crore shares.
“LIC has 66 percent market share in new business premiums with 283 million policies and 1.35 million agents as of March 31, 2021. Embedded value of LIC as on September 31, 2021, is Rs 5,39,686 crore (about Rs 5.4 trillion),” Tuhin Kanta Pandey, DIPAM Secretary (Department of Investment and Public Asset Management), tweeted.