with the LIC IPO expected next year, how do you think that an investor should approach the LIC IPO investing?

I am certain that LIC will be the IPO that will not only occupy investor attention but also the government focus. While the IPO may eventually happen either in FY22 or FY23, it is clear that the IPO will happen in calendar 2022. With a size of over Rs.70,000 crore, it dwarf other IPOs and also set the tone for the market. A lot will depend on how DIPAM plans the marketing of LIC IPO since it would be nearly 50% of the total 2022 IPO story.

I come to the core question; how should investors approach the LIC IPO? Apart from retail investors, but even policyholders and institutions will be awaiting the LIC IPO. Embedded valuation of LIC is likely to be around $150 billion, but government may price LIC IPO attractively to make it more enticing. Hopefully, the government must not make the mistake of its 2017 divestment fiascos of New India Assurance and GIC RE.