Pre-IPO Valuation of LIC Reaches Nearly USD 150 Billion: Get All Details Here

Life Insurance Corporation has recently reached a pre-IPO valuation of around USD 150 Billion as per reports. The largest insurance provider in India is likely to put forward its draft red herring prospectus to SEBI by the last month of this year.

Considering the recent developments, this insurance giant is expected to hit the share market by the first quarter of 2022.

Find out more details on this topic in the sections below.

Know the Recent Developments

Life Insurance Corporation has recently shared names of nearly 100 investors from around the globe with the banks managing this initial share sale. The goal here is to rope in as many foreign investors as possible for this upcoming public offer.

In this regard, the merchant bankers appointed to manage this public offer are likely to approach different sections of foreign investors for LIC’s initial sale of shares in the next few weeks.

While many are eagerly waiting for this nation’s biggest IPO, Life Insurance Corporation itself is ensuring enough demand for its initial public offer.

A Detailed Look into the Initial Public Offer

As per reports, Life Insurance Corporation will be filing its draft papers with market regulator around the first week of December. This process was getting delayed due to a lack of proper valuation of the firm. But now, with a valuation of nearly USD 150 million, LIC’s DRHP can be expected soon.

The Government of India will maintain a minimum of 75% stake in Life Insurance Corporation for the first five years from launching this IPO. After five years, they will hold a minimum of 51% stake in this firm.

Considering this public offering’s potential to raise Rs. 400 billion to Rs. 1 trillion, the Prime Minister of this nation is on his toes to bring it forth. The goal here is to decrease and eliminate the budget gap of this nation with the proceeds of this initial public offering.

Besides a valuation of USD 150 billion, Life Insurance Corporation has over 1 lakh employees, a sales channel of 12 lakh agents and assets amounting to Rs. 34 trillion. In FY21, this company also profited Rs. 37,000 crores from investing in equity.

Bottom Line

The central government is on its toes to bring forth this public offering by March 2022. As stated by Finance Minister in October 2021, there will not be any delay in this IPO because of commitment issues of the decision-makers. Now that the valuation of Life Insurance Corporation is complete, potential investors can expect its IPO to hit the road soon.

Frequently Asked Questions

1. When was LIC founded?

LIC was founded in 1956.

2. Who is the Chairperson of LIC?

The Chairperson of LIC is M R Kumar.

3. What is net premium income of LIC?

LIC features a net premium income of Rs. 3,37,000 crores.

4. What is the market share of LIC in terms of policy count?

In terms of policy count, LIC holds around 74.71% of the market share.