Know before Lic's ipo this thing will definitely benefit

Know before Lic's ipo this thing will definitely benefit

This week the government will file a price draft paper in SEBI for this.  There is good news for those who have an LIC policy.  It is hoped that 10 per cent of this IPO will be reserved for them.  This will increase their chances of getting shares.  Apart from this, it is also expected to get a slight discount in its share price.

 LIC will continue to be owned by the government

 LIC is currently owned by the government.  It is the largest life insurance company in the country.  The government wants to raise about Rs 90,000 crore by selling its stake in the company.  This will help the government achieve its disinvestment target for the current financial year.  Even after the IPO, the government will continue to own LIC.  By law, the government's stake in LIC cannot be less than 51 per cent.  Apart from this, the government will not be able to sell more than 25 per cent stake in LIC during the next five years.

Know before Lic's ipo this thing will definitely benefit


 Has the highest market share

 LIC has a market share of 64.1 per cent.  It is the largest life insurance company in the country, according to a Crisil report.  Its return on equity is also the highest at 82 per cent.  It is the third largest insurance company in the world in terms of life insurance premiums.  When it comes to market share, there is no other insurance company in the world with a market share of 64%.

 The highest return on equity in the world

 CRISIL reports that LIC's 82% return on equity is much higher than other major insurers in the world.  Chinese insurance company Ping has a return on equity of 19.5 per cent, while Aviva has 14.8 per cent.  China Life Insurance's return on equity is 11.9 percent.

 New Business Premium Growth Cool

 In the first six months of FY 2021-22, LIC's after-tax profit stood at Rs 1,437 crore.  Its profit was Rs 6.14 crore in the same period a year ago.  In the first six months of this financial year, LIC's new business premium growth rate stood at 554.1 per cent.  It is the sixth largest insurance company in the world with a net worth of 52 522 billion.

Will be the largest listed company in the country

 According to London-based Brand Finance, LIC's market value is expected to touch Rs 43 lakh crore this year.  It is expected to increase to Rs 58.9 lakh crore in the next five years i.e. by 2027.  In this way, it could become the largest company in the country for the next few years.  At present, Reliance Industries, the country's largest company, is valued at over Rs 16 lakh crore.  TCS ranks second in this regard, with a valuation of over Rs 14 lakh crore.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. www.Tradtips.com suggests its readers to consult with their investment advisers before making any financial decision.)

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