LIC IPO: The government will file draft papers with SEBI this week. Let us tell you that LIC’s IPO is special in many ways. There is also a good investment opportunity for LIC policy holders in this IPO. 10 percent of this IPO will be reserved for them.
New Delhi: LIC IPO: In the stock market these days IPO has taken hold. One after the other, big companies have launched their IPO. Now in this sequence, retail investors are eagerly waiting for LIC’s IPO. It is being told that LIC’s IPO will come in March. For this, the government will file draft papers with SEBI this week. Let us tell you that LIC’s IPO is special in many ways. LIC policy holders can also invest in this IPO as 10 percent of it will be reserved for them. That is, the chances of getting shares in the policyholders will increase. Apart from this, they can also get discount.
Ownership with the government
It is worth noting that the ownership of LIC is still with the government. That is, now it is operated under the government. Let us tell you that it is the largest life insurance company in the country. Now the central government wants to raise about Rs 90,000 crore by selling its stake. By selling its stake, the government can achieve the disinvestment target of the current financial year. Apart from this, let us also tell you that even after the IPO, the government’s ownership of LIC will remain. By law, the government’s stake in LIC cannot be less than 51 percent and the government cannot sell more than 25 percent of its stake in LIC during 5 years.
Country’s largest insurance company
Significantly, the market of LIC is very strong. Its market share is 64.1 percent. 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. According to this report, it is the third largest insurance company in the world in terms of life insurance premiums. It is the world’s largest insurance company with 64 percent market share.
Return on Equity highest in the world
According to Crisil’s report, LIC’s 82 per cent return on equity is much higher than other major insurance companies in the world. After this, Chinese insurance company Ping has a return on equity of 19.5 percent, while Aviva’s at number three is 14.8 percent. At the same time, the return on equity of China Life Insurance is 11.9 percent.
Tremendous profits and growth
Now let’s talk about profits and growth. If we look at the profit of LIC, the profit after tax of LIC in the first half of the financial year 2021-22 stood at Rs 1,437 crore. LIC’s profit was Rs 6.14 crore in the same period a year ago. In the first half of this financial year, the growth rate of LIC’s new business premium was 554.1 percent. Not only this, people are waiting for this mega IPO very fast because it is the sixth largest insurance company in the world with $522 billion in terms of total assets.
