Lic IPO News Latest – LIC IPO timeline and numbers are all set to come during the next budget 2022. The details of the share price of LIC and other valuations might be announced by Finance Minister Nirmala Sitharaman in her Budget 2022 speech. The state-owned life insurer is preparing its financial results for the last quarter before filing a draft red herring prospectus (DRHP) for its initial public offering by the end of January 2022.
The government has asked the appointed merchant bankers to draw a list of large investors that can act as anchor investors in the IPO. According to reports LIC IPO is expected to be launched in the current fiscal itself for which the company is also collecting data on its assets under management. DRHP to be filed soon will include the latest numbers and will provide the foreign investors with an opportunity to participate in the IPO.
The government aims to raise close to ₹1 lakh crore (₹1 trillion) from the LIC IPO will make it the largest IPO in the country to date. Department of Investment and Public Asset Management (DIPAM) is the nodal agency for the listing of the insurance firm.
LIC IPO Timeline To Come In Budget 2022
LIC IPO, Life Insurance Corporation is preparing its financial results for the December quarter and data on assets under management with reports claiming the Finance Minister Of India is likely to present the IPO during her budget 2022 narration. The Government aims its market valuation at ₹15 trillion. The Government may fetch ₹1.5 trillion eyeing a 10% stake sale in the insurance company and targets ₹1.75 trillion disinvestments for the Fiscal Year 2022.
₹4-5 trillion is LIC’s embedded value. The sum of the net asset value and the present value of future profits of a life insurance company is the embedded value. The value estimates future profits from existing and past businesses through which a life insurance company can be valued. Global actuarial firm Milliman Advisors has been appointed to assess LIC’s embedded value.
LIC’s net profit increased 7% in FY21 to ₹2,907 crores from ₹2,713 crores the previous year. Premium income grew to ₹4.03 lakh crore from ₹3.79 lakh crore. ₹37,000 crores were its last fiscal year profit that ended on March 2021, it increased its profits to ₹30,000 crores till October this year.
LIC being a loss-making firm in the last decade is still the largest Insurance company in India when it comes to renewal premiums with a 63% share. The insurer dominates rural India with a 71% market share, followed by SBI Life at 7% and HDFC Life at 3%.
Termed as the biggest IPO ever to hit the Indian markets, with a special quota for its Policy Holders, investors are eagerly waiting for the details and draft papers to be filed for LIC IPO. Goldman Sachs (India) Securities, Citigroup Global Markets India, Nomura financial Advisories and Securities India, SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital are the merchant bankers for LIC IPO.