The Life Insurance Corporation of India’s IPO has been considered one of the biggest IPO. Since its announcement in March, the IPO has created quite an uproar in the media. The government has encouraged foreign investors and Indian citizens to invest in the LIC IPOs. Insurers who have filed their drafts with the help of the securities and exchange board have also mentioned various indicators that must always look at before they make any investment in the IPO. To know more about the upcoming IPO, keep reading this post.
The Government Has Taken All The Possible Measures
The Indian government has taken up all the measures to make sure LIC IPO becomes a success. Personal text messages have been sent to people and advertisements in newspapers have also been sent to make sure people understand the IPO and then invest in them. As per the latest stories, the government also aims to raise somewhere between 4k to 1 lakh crore with the help of this IPO.
Foreign Investment Is Highly Welcomed
To receive maximum participation from all the foreign investors, the industry and commerce ministry has also made a few amendments using the FDI policy.
Monetary Policy
Several market experts also like to believe that the RBI has kept a high repo and reverse repo rate unchanged as they don’t want to spoil the mood of the market since India’s exhaustive IPO of insurance is about to arrive soon.
The Various Risk Factors
Before making any kind of investment in IPO, LIC has also recently mentioned in the DRHP to take a look at various factors, which include internal as well as external risks that the company might be facing. Not just, some of their operations also bring their challenge to their businesses, while many of the challenges are introduced as a result of government regulations too.
What can other policyholders avail of from this?
While there is no special provision announced by the LIC policyholders, the DRHP has mentioned in its latest release that reservations aggregate for all policyholders should not cross 10%. The share sizes have not been discussed and disclosed as of now. But people who wish to participate also have to update all their details.
Unclaimed Funds
According to DRPH, the initial amount was somewhere close to 19 crores by the end of March and earlier it was almost 16 crores in 2020.
Latest Directors Appointed
New independent directors have been appointed by the LIC board to meet the norms of corporate governance. Not just that, LIC has also appointed many financial service secretaries like Anjuly Duggal, Sanjeev Duggal, and chartered accountants like V S Parthasarathy, Raj Kamal, M P Vijay Kumar, and others have also been roped in as independent directors on the LIC board.
So that was a look at the LIC IPO that was launched recently. If you are interested in investing in policies, make sure that you have read this post thoroughly. You can also share this post with other policy shareholders who are keen on making future investments in the same.
