The IPO of Life Insurance Corporation of India (LIC) will come next month. The company can raise Rs 70,0000 to Rs 1,00,000 crore from the IPO. Currently, the government has a 100 percent stake in the company. After the listing, the valuation of LIC is expected to be Rs 13 to 15 lakh crore. In this way, it will join the club of the largest companies in the country. This IPO is special in many ways for the Indian stock market.
More than 29 crore customers
LIC was established in 1888. Its policy holders are 29 crores. The company is thinking about reserving a share for its policy holders. The policy holders whose policy will be linked to their PAN card will get the benefit. The company can discount them in price.
11 lakh agents
LIC has 8 zonal offices across the country, under which 113 divisional offices come. LIC has 11.48 lakh agents across the country. It has more than 2000 branches. The LIC generates a surplus of Rs 57,780 crore. Out of this, Rs 2,889 crore has been paid to the dividend government.
More than 98 percent claim settlement ratio
LIC’s claim settlement ratio is 98.27 percent. Such an old and such a big company tells such a claim settlement ratio about its work quality. Its solvency ratio is 176 per cent, which is more than the fixed standard of 150 per cent. The NPA of LIC on total investment is 7.78 percent.
Great possibilities for growth
Life insurance industry is very likely to grow in India. Currently, a large part of the population is far from the Life Insurance Policy. The annual growth of the life insurance industry is 22.5 percent. LIC’s return on investment is also better than other life insurance companies.
Stock market shine may increase
LIC’s IPO is expected to increase the brightness of Indian stock markets. The reason for this is that CDCL currently has more than 5 crore demat. Since, the number of LIC policy holders is more than 29 crores, which can increase the number of demat accounts.
The LIC board approved the IPO’s plan on Friday. However, he has asked to make minor changes in the draft document. Again, there will be a meeting of the board with 15 members, in which the draft herring prospectus will get the Clire. It is expected that LIC will send prospectus to SEBI by Monday next week.
