LIC’s IPO is coming. This issue can range from 60,000 to 90,000 crore rupees. After the listing, it will join the list of the largest companies in the country. Its Nifty is expected to join 50. UBSL Global Research has said that it is expected to join the Nifty given the size of the issue. Actually, the free-float of its shares will make it to the major indices for this.
UBS Global Research has said, “LIC will be the third largest listed company in India in terms of market cap. It will be the 32nd largest company in terms of free-float. It is expected to get a place in the Nifty 50 index.” However, this IPO is coming at a time when the market sentiment is weak. There is pressure on the market due to stress in Russia-Ukraine, high crude prices and anticipating Itrest rate in the US.
The biggest thing in favor of LIC is that its branding is very strong. LIC brand has access to door-to-door in the middle class. Before 2000, it was the only life insurance company in the country. For a long time in India, people have considered LIC products a source of savings. Therefore, it does not need any kind of publicity.
LIC has about 1.2 million agents across the country. The number of its policyholders is more than 29 crores. It has more than 2000 branches across the country. In this way, it has access to every corner of the country. Its market share is around 66 percent. This indicates its strong position in the insurance market. Experts also say that the company is going to give its policyholders a chance to buy shares in low prices. With this, a large number of investors can show interest in this IPO.
