LIC IPO: Setting the stage for the country's biggest ever public offering, Life Insurance Corporation (LIC) on has filed draft papers with capital market regulator Sebi for the sale of 5 per cent stake by the government.

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The initial public offering (IPO) of over 31.6 crore shares or 5 per cent government stake is likely to hit the D-street in March and employees and policy holders of the insurance behemoth would get a discount over the floor price, as per PTI.

Amid these major developments pertaining to LIC IPO, a report by UBS Securities India Private Ltd sheds light on - What LIC IPO could mean for the market.

Here are key things to know about LIC IPO as decoded by UBS Securities India Private Ltd:

1- LIC would be 3rd-largest company by market cap -

1st RIL Reliance Industries Ltd 214

2nd TCS Tata Consultancy Services Ltd 182

3rd Life Insurance Corporation of India 172

(in US$ Bn)

2- LIC would be 32nd-largest based on free float market cap (this could further go up with more dilution from the government, as proposed), as per UBS Securities India Private Ltd.

3- Noteworthy, US$ 34 bn capital was raised in Indian equities in 2021 and LIC is targeting 25% of that number in a single deal, says UBS.

4- The largest fund manager in Indian equities

"With US$520bn total AUM, LIC is the largest institutional investor in Indian markets. Equity AUM of US$130bn gives LIC a 29% share of domestic institutional equity AUM— a shade more than half of all equity mutual funds in India," says the report by UBS Securities India Private Ltd.

5- Importance of LIC for the household

UBS in its report says, "In our analysis, nearly Rs10 out of every Rs100 saved by the Indian household each year goes to LIC, making it larger than even the perceived staple of household savings—a deposit with SBI (we notice the gap is narrowing). Media reports suggest the government is looking to tap into LIC's large customer base (280m policies, about one per family in India) to generate buying interest in the IPO. "

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)