The country’s largest insurance company Life Insurance Corporation of India (LIC) is going to IPO. LIC is also the country’s largest financial institution, which manages more than 40 lakh crore rupees of the public. The government is going to raise Rs 21000 crore from the stock market by bringing LIC’s IPO to meet its disinvestment target. Let us know what the market experts think about LIC IPO?
When will LIC’s IPO open?: According to the information, LIC’s IPO can be open for retail investors from May 4 to May 9. In this, the price of one share has been kept at Rs 909-949. LIC’s policyholder is getting a discount of Rs 60 per share, while for employees this discount has been kept at Rs 45 per share.
This IPO will be a complete offer for sale i.e. the entire amount received from the stock market will not go to LIC, but to the government. The government will sell about 22.13 crore shares of LIC in this IPO. Earlier, there was talk of keeping the size of LIC’s IPO at Rs 65 thousand crores, but due to the fall in the stock market due to Russia and Ukraine war, the size of the IPO has been reduced to Rs 21 thousand crores.
What do market experts say?: Mutual fund managers in the stock market say that after reducing the size of the IPO, LIC’s stock is getting at a very attractive price, while a big fund manager says that the company is financially very strong and there is a lot of growth potential. LIC’s stock looks very attractive at current valuation. Like last year, there is no bull run in the stock market this year. I can’t say that it will make you money instantly, but in next 3-4 years this stock can give you a good return.”
Manoj Dalmiya, Founder and Director, Proficient Equities Ltd. said, “In our opinion, at present one cannot value LIC properly as LIC itself is a very large institution. At present, everyone wants to take an insurance policy so that they can protect their family members financially in times of uncertainty. We feel that we should invest in this IPO with a long-term view.”