LIC: The Insurance Giant IPO

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If you want to invest in the stock market, then this is your time. As per the information, LIC will be the biggest IPO over this decade. As we all know, LIC is a government sector insurance company that will soon be privatized. So, here comes the golden chance for all the Indian investors to get a massive amount of profit. According to reports, the government will lift about ₹75000 crores by reducing a 5% stake. 

Before getting more into it, let’s understand what an IPO is? Well, IPO stands for initial public offering. A company shifts from a private limited to a public limited company when it starts offering IPO. 

However, Zomato, Tata and many other new companies formed their IPO and started trading in the stock market. The Initial Public Offering or IPO has bought the trading life of every company into existence. A company starts attracting investors and massive capital when offering IPO, shifting from private limited to a public limited company.

Now let’s move on to what is LIC IPO and how is it beneficial for you? 

WHAT IS A LIC IPO?

The mega initial public offering (IPO) of Life Insurance Corporation (LIC) will soon launch the central government. This announcement was expected in the fourth quarter of 2021-22. In the meeting with the ministry’s top officials, finance minister Nirmala Sitharaman has already reviewed the progress of the proposed LIC IPO. However, LIC is the only Indian PSU in the insurance sector to hold such a huge market. 

“It is an adequate chance for commercial investors, and oversubscription is anticipated,” said Manoj Dalmia, the Founder and Director-Proficient Equities Limited. However, he has said it quite straight, and I think this will surely happen. 

How beneficial is the LIC IPO for Investors?

If you are an investor, you are always looking for an IPO, which will give you a large amount of return with much lesser risk. It is your opportunity to invest in LIC IPO, and it will surely turn into a cherry on the cake. As per the statement given by Chief Economic Adviser K. Subramanian, LIC IPO in the coming future can give a profit of up to 1 lakh crore. 

Life Insurance in India is, however, developing. According to insurance regulator IRDA, it’s increasing with only 2.82% penetration. Hence, the market is huge for growth purposes. 

Ravi Singh, Vice President & Head of Research, Share India Securities, believe that The LIC IPO will provide an attractive investment opportunity to long-term investors 

  • The LIC IPO delivers a tremendous alternative to commercial investors and employees to finance the business for an extended period. As well as make quick listing day gains.
  • The LIC policyholders might retain a ten percent compunction in the LIC IPO. That is surely an added advantage.

According to the resources, the central government will split the LIC IPO into two parts to get more and more profit, like food delivery facilitator Zomato which mop up to 9375 cores. 

Overall, investors were hungry enough to absorb all the stocks of LIC when it came to the stock market; the government is going to split the IPO into two parts. 

Myths About IPO That We All Should Know Before Investing 

These are some of the myths circulated all over the market, and many investors have misunderstood these myths as truth. Let’s find out what these are.

  • The more data, the better information 
  • Civil appetite leads to better prospects 
  • IPO gives only greater retrievals 
  • Retail investors will surely get allotments 

So, these were some essential information regarding IPO and investing in LIC IPO. I hope this article will help you in one way or the other. 

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