LIC IPO Valuation: The valuation of India’s most valuable company Reliance Industries Ltd is estimated at around USD 220 Billion, the report said.
New Delhi: State-owned Life Insurance Corporation of India (LIC) has been valuated at a staggering amount of around USD 150 Billion ahead of its Initial Public Offering (IPO), according to a report in Live Mint. The life insurance giant is expected hit the stock market by March 2023, as per media reports.
Apart from USD 150 billion valuation, LIC has 1.2 million agents sales channel, more than 100,000 employees, Rs 34 trillion of assets, and Rs 37,000 crore profit from equity investments in FY21, the Live Mint report says. The valuation of India’s most valuable company Reliance Industries Ltd is estimated at around USD 220 Billion, the report said.
LIC is also trying to rope in various foreign investors as anchor investors ahead of its IPO launch to provide stability in long-run, the Mint report said. The central government had said that it will maintain at least 75 per cent of its stake in LIC till after five years of launching of the proposed IPO and would maintain 51 per cent stake thereafter
LIC IPO to Help Government In Achieving Disinvestment Target
The raised amount will help the government in achieving its disinvestment target for FY 2020-21. In her budget speech this year, FM Nirmala Sitharaman had said, “I have estimated 1,75,000 crores as receipts from disinvestment in BE 2021-22.” The government has already signed an agreement to sell Air India to Tata Sons.
According to various media reports, government is eyeing to offer stakes in Bharat Petroleum Corporation and Shipping Corporation of India and Container Corp. of India.
Share Price Expected To Be Between Rs 400- 600
According to Business Standard, the amendments proposed in the LIC Act, 1956 read, “The authorised share capital of LIC shall be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each.”
