{"id":6412,"date":"2022-01-12T17:39:19","date_gmt":"2022-01-12T12:09:19","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=6412"},"modified":"2022-05-02T02:30:38","modified_gmt":"2022-05-01T21:00:38","slug":"lic-ipo-likely-valuation-and-prospectus","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/lic-ipo-likely-valuation-and-prospectus\/","title":{"rendered":"LIC IPO: Likely Valuation and Prospectus"},"content":{"rendered":"\n<p>Investors have been eagerly awaiting what could be India\u2019s biggest public offering\u2014LIC <a href=\"https:\/\/blog.tickertape.in\/all-you-need-to-know-about-ipos\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">IPO<\/a>. The government has set a target of achieving <a href=\"https:\/\/blog.tickertape.in\/impact-of-governments-efforts-on-cpse-etf\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">divestment<\/a> of Rs. 1.75 lakh cr. for 2021-2022. So far, the government has only garnered Rs. 9,330 cr. through the sale of public sector undertaking (PSU) stake. The success of Life Insurance Corporation of India\u2019s (<a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\">LIC<\/a>) initial share sale is crucial in getting closer to achieving the target.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-likely-valuation-and-prospectus\/#IPO-prospectus\" title=\"IPO prospectus\">IPO prospectus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-likely-valuation-and-prospectus\/#Valuation-and-market-value\" title=\"Valuation and market value\">Valuation and market value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-likely-valuation-and-prospectus\/#Policy-changes-to-ensure-the-success-of-LIC-IPO\" title=\"Policy changes to ensure the success of LIC IPO\">Policy changes to ensure the success of LIC IPO<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IPO-prospectus\"><\/span><strong>IPO prospectus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/blog.tickertape.in\/10-facts-about-lic\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">Life Insurance Corporation of India<\/a> is expected to file the draft papers for its ~Rs. 15-lakh-cr. <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> in the last week of this month. The prospectus will include information such as the embedded value of LIC and the number of shares on offer.<\/p>\n\n\n\n<p><meta charset=\"utf-8\">To know more about the <a href=\"https:\/\/www.tickertape.in\/blog\/uncover-lics-ipo-with-harsh-vora\/\">LIC IPO<\/a>, follow our article here: <a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\" target=\"_blank\" rel=\"noreferrer noopener\">LIC IPO: Date, Price, Review, News, Application and Details!<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Valuation-and-market-value\"><\/span><strong>Valuation and market value<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per a report by Bloomberg, LIC could be valued at about Rs. 15 lakh cr., equaling $ 203 bn. However, a completed <a href=\"https:\/\/www.tickertape.in\/blog\/market-talks-we-need-to-listen-a-detailed-valuation-report-on-hero-motocorp\/\">valuation report<\/a> is still underway. The state-run insurer\u2019s embedded value will likely be over Rs. 4 lakh cr. At the same time, its <a href=\"https:\/\/www.tickertape.in\/blog\/market-value\/\">market value<\/a> could be up to four times that amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Policy-changes-to-ensure-the-success-of-LIC-IPO\"><\/span><strong>Policy changes to ensure the success of LIC IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From sending phone messages to publishing advertisements in newspapers and adjusting capital-market rules, authorities and executives are trying to make the record IPO a success.&nbsp;<\/p>\n\n\n\n<p>After consulting the finance ministry, the commerce and industry ministry has initiated some changes in the <a href=\"https:\/\/blog.tickertape.in\/impact-of-fdi-on-the-environment-and-vice-versa\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=\" rel=\"nofollow noopener\" target=\"_blank\">foreign direct investment (FDI)<\/a> policy to facilitate the disinvestment of LIC.<\/p>\n\n\n\n<p>The current <a href=\"https:\/\/www.tickertape.in\/blog\/impact-of-the-revised-fdi-policy-on-indian-economy\/\">FDI policy<\/a> allows 74% foreign investment under the automatic route in the insurance sector. However, this rule doesn\u2019t apply to the Life Insurance Corporation of India; it is administered through a separate LIC Act. As per <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/?utm_source=blog&amp;utm_medium=article\">SEBI<\/a> rules, both <a href=\"https:\/\/www.tickertape.in\/blog\/foreign-portfolio-investment\/\">FPI<\/a> and FDI are permitted under public offer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors have been eagerly awaiting what could be India\u2019s biggest public offering\u2014LIC IPO. The government has set a target of achieving divestment of Rs. 1.75 lakh cr. for 2021-2022. So far, the government has only garnered Rs. 9,330 cr. through the sale of public sector undertaking (PSU) stake. The success of Life Insurance Corporation of<\/p>\n","protected":false},"author":27,"featured_media":6414,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1727,1729],"tags":[],"acf":[],"modified_by":"Vyshakh","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/01\/10-2.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6412"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=6412"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6412\/revisions"}],"predecessor-version":[{"id":8246,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6412\/revisions\/8246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6414"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=6412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=6412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=6412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}