LIC has been a household name since it was created in 1956. Expectedly, there is a big buzz around its IPO.
– Published in the Quint
In a bid to replenish the public coffers that have been drained out by the pandemic, India is planning one of the biggest IPO listings ever.
On 13 February, the state-run Life Insurance Corporation of India (LIC) filed its draft red herring prospectus with capital markets regulator SEBI. According to the filing, the government, which owns 100 percent stake in the company, is offering 31.62 crore equity shares or a 5 percent stake in the IPO.
There’s been a positive response among retail investors to the IPOs launched in the past year – but what is the temperature around the LIC IPO listing?
But First, How Will the LIC IPO Help the Government?
With the Indian economy taking a big hit owing to the COVID-19 pandemic, at such a time, the benefits for the government are obvious.
“The government needs the proceeds of disinvestment to fund the infrastructure projects and other expenses that have built up due to the costs of the pandemic,”