What is the valuation that Government is looking at for LIC?

Indian government is apparently pegging for a valuation of Rs.15,00,000 crore or $203 billion for Life Insurance Corporation or LIC. This will make the second most valuable company in India and also the second most valuable insurance company in the world after United Health of the United States. LIC is expected to file its DRHP by the last week of January 2022.

The final Milliman Advisors report on embedded valuation is expected to be around Rs.4 trillion and normally the stock market value is pegged at around 3 times to 5 times the embedded value. However, it remains to be seen if the government is able to sell such a large sized issue to institutions and retail in India.