LIC IPO: Government insurance company Life Insurance Corporation of India (LIC) will become the country’s 5th largest market value company as soon as it is listed in the stock market.
According to the calculations of experts, the market capitalization of LIC will be around Rs 6 lakh crore and there are only 4 companies in India with this high market capitalization. Worldwide, LIC will be ranked 186th in terms of market capitalization.
LIC’s Initial Public Offer (IPO) is reported to open on April 4 and has a price band of Rs 902 to 949. If we calculate on the upper price band of Rs 949, then the total market value of LIC is around Rs 6.01 lakh crore.
At present, Reliance Industries (RIL) is the most valuable company in the country with a market capitalization of Rs 18.23 lakh crore. This is followed by Tata Consultancy Services Ltd (Rs 13.12 lakh crore), HDFC Bank Ltd (Rs 7.58 lakh crore) and Infosys Ltd (Rs 6.57 lakh crore).
According to media reports, LIC’s IPO will open on May 4 and will close on May 9. Markets regulator SEBI has approved the IPO proposal of LIC. Under this, the government will sell its 3.5 per cent stake in the company, as against the earlier plan to sell 5 per cent.
The government will get Rs 21,000 crore from this IPO and it will be the biggest issue in the country so far. LIC has reserved 10% of the IPO for policyholders and 5% for employees.
In the issue price of LIC, a discount of Rs 60 has been given to the policyholders. Whereas retail investors and employees have been given a discount of Rs 45 on the issue price.
LIC is the eighth largest life insurance company in the world in terms of total assets. As of fiscal 2021, it had a net worth of around $507.33 billion. At present, China’s Ping An Insurance is the largest insurance company in the world in terms of total assets. It is followed by Germany’s Allianz SE and France’s AXA SA.