LIC IPO may set many trends for Indian stock market: Key things to know
In the midst of the recent IPO mania, all
eyes are now on India's largest-ever public offering of state-owned Life
Insurance Corporation of India's shares (LIC). The government will finalize
investment bankers for the LIC IPO this week, moving forward with the insurance
behemoth's public offering, with as many as 16 merchant bankers in the hunt to
manage the much-anticipated share sale.
Many global bankers have expressed interest
in handling the highly anticipated offering, including Goldman Sachs, JPMorgan,
and BofA Securities, and the 16 book-running lead managers will present
in the next two days to the Department of Investment and Public Asset
Management (DIPAM).
Experts feel that the listing of LIC shares
will enhance the Indian stock markets while also providing relief to the
government in terms of its divestment aim. "The LIC IPO will set multiple
trends." It will be the largest IPO in India's history.
Furthermore, if policyholders take
advantage of the option to subscribe to the proposed 10% of the IPO allocated
for them, it will result in the opening of several lakhs of Demat accounts,
accelerating the country's equity craze.
The listing of the LIC share will assist
improve India's market capitalization and provide the government with
much-needed disinvestment funds. "The low will be determined by how the
IPO is priced,".
According to a Finance Ministry official,
after the LIC IPO, approximately 60% of the insurance business will be with
listed businesses. Last month, the Union cabinet approved the listing of the
insurance giant, which is slated to go public in the March quarter of this
fiscal year.
The IPO of India's largest insurer is part of
the government's goal to generate 1.75 lakh crore through disinvestment in the
current financial year.