How will the Lic Ipo Benefit Policyholder

How will the Lic Ipo Benefit Policyholder- fetch 1 lakh crore

How will the Lic Ipo Benefit Policyholder- fetch 1 lakh crore

Recently, the discussion about LIC Ipo is going on for a long time, every person wants to know about LIC IPO, so in this article, what is the status of you in the present and how long it can be launched, and which policy of LIC. What is the benefit they are going to get from the IPO?

How will the Lic Ipo Benefit Policyholder

The way you can buy shares of other companies like Reliance, Tata, BHEL, SAIL, etc., in the same way, you will be able to buy shares of LIC.
But now the government has made it easy to buy shares by listing LIC.

What is Happening?

The center is set to list India’s largest insurance firm, a state-owned life insurance corporation of India, on the stock exchanges to help meet the disinvestment target for the year.

The cabinet committee on economic affairs approved the IPO in July.
Earlier, the actuarial firm Milliman advisors were appointed to assess the embedded value of LIC.

16 Merchant Bankers are helping to bring LIC in the market inside the public issue. It Includes major global merchant players such as HSBC, Bank of America, Citibank, and BNP Paribas.

Very soon, the Indian government is announcing which merchant banker will manage the LIC IPO as well.

Why launch LIC IPO?

As the disinvestment target of the Government of India could not be met in the last two years, the main reason for this is the Pandemic.

The target of the Government of India this year is 1. 75 lakh crore, which the government will try to remove through the asset, and for this Air India, BPCL has already been delayed.

Therefore, by listing LIC IPO, the Government of India make a profit of up to 1 lakh crore by 2022.

The date to launch LIC IPO has not been announced yet, but it can be launched by the third or fourth quarter of this year.

The government stated in the amendment that the authorized share capital of LIC can be increased to Rs 25000 crore and divided into 2500 crore shares.

In 2500 crore shares, the price of each share is Rs.10.

Example

If the shares landed in the market, then suppose if the price of one share is at 100 rupees, then the Government of India can get a profit of up to 90 rupees per share.

Now suppose, the government sold 500 crore shares out of 2500 crore shares and becomes 500 X 90 = 45000 crores.

How will it benefit those with policies?

You can get a very good return by investing in LIC IPO, let’s know about their benefits” Lic Ipo Benefit Policyholder”.

shall be made like that applicable to a reservation on a competitive basis for employees in a public issue.

  1. 10% share is reserved for LIC policyholders, which will increase your chances of investing.
  2. 10%discount is provided to the LIC policyholders in buying the shares, which means if the value of the share in the market is Rs 100 then the LIC policyholders will get the share of Rs 90.
  3. Safely invest in LIC IPO due to owned by the government.
  4. Better profit margins increase.
  5. The sovereign guarantee is obtained due to being owned by the Government.

Talk Of a split IPO

LIC IPO can come into the market in a split way because many companies are bringing their IPO in the market like Zamato and Paytm are the main company.

In the first IPO, the government can sell its 5%, then by the end of the year, it can sell its 5% share, which we will not call IPO but follow on offer.

Why excited for LIC IPO?

LIC is an old company, and almost everybody has taken the LIC policies in India, along with being owned by the government, and the trust factor also remains.

  • LIC’s IPO will also take a lot of money, and people will also get a lot of profit from it.
  • The overall insurance sector will get benefits advent of LIC IPO, 
  • The penetration of insurance is less in our country.
  • If the data of 2019 is seen, then only 2.82% of people have insurance. That’s why even today Insurance contains a huge market in India.
  • Today if we look at the data of life insurance in India, then even today 66. 6% share is with LIC only.

With this information, you must have got a good idea that the status of LIC in the market and what will be the benefit to the policyholder, you must have got all this information.

I hope you liked this article very much and all the information given in it helped you to understand LIC IPO.

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