What do we know about the valuations and likely opening dates of the LIC IPO?
Answer
Answer
It looks like finally the government and the DIPAM are all set to file the IPO DRHP by the end of January and to complete the LIC IPO in the current fiscal year itself. This will enable the government to shown an aggressive divestment target for this fiscal year. As of now we await the IPO price band and the embedded actuarial valuation by Milliman.
What is the market talking about? LIC valuation is pegged at Rs.15 trillion or $203 billion and the government plans to hive off about 6-7% of the capital for. Obviously, the government will be heavily counting on the institutional investors and the QIBs to support the IPO to its logical full subscription. It will also be tapping the policy holders and LIC agents to sell.
LIC is likely to become the second largest by market capitalization after RIL and also the most valuable financial services company in India. How LIC looks when compared to global insurance majors? LIC will be the second most valuable insurance company in the world after United Health Insurance.