Mumbai: India Started the largest insurance company blockbuster listing in the country as part of a wider privatization encouragement to increase public cash dried by the Coronavirus pandemic and fund new infrastructure.
While prices have not been established, analysts expect the IPO from the Corporation of Life Insurance of India (LIC) to the largest India to date, potentially producing a government of more than $ 10 billion.
After the listing, which is expected in March, LIC will be one of the largest public companies in India along with giants such as dependency and TCS.
LIC was made in 1956 and was synonymous with life insurance in Indian post-independence until a private company was allowed to enter in 2000.
The company held a share of two-thirds in the domestic life insurance market.
It manages 36.7 trillion rupee assets ($ 491 billion), which is equivalent to almost 16 percent of Indian gross domestic products.
It has more than 100,000 employees and one million insurance agents.
Lic real estate assets include major offices in major locations in various Indian cities, including 15-storey buildings in the southern city of Chennai and a clear head office in the heart of the Mumbai Financial Region.
The company is also believed to have many collections of rare and valuable artwork that includes paintings by MF Hussain – known as Pablo Picasso from India – Although this ownership value has not been published.
The third largest economy in Asia has grapled with a prolonged slowdown even before the commencement of the Coronavirus Pandemic.
India has recorded the worst recession since independence due to the Covid-19 crisis.
Efforts to contain the spread of viruses, such as through strict locking, creating a significant budget deficit and encouraging millions into unemployment and poverty.
The IPO LIC will provide encouragement to government efforts to increase cash that is needed through privatization, which runs badly behind the schedule.
The government has accumulated only 120.3 billion rupees by selling shares in various financial entities in this financial year, lacks the target of 780 billion rupees.
Srinath Sridharan, an independent market commentator, equalized Lic to one of the “family jewelry” of the Indian government.
Lic is the name of the household in India and has a strong grip on the life insurance market in a broad South Asian country even though the entrance of the private player.
The company offers millions of holder policy opportunities to invest in IPOs with discounts, promote offers through television advertising and complete newspaper ads.
Analysts expect retail investors, including many of the first timers, to show strong appetite to trap stocks in a respectable company.
But there is a lot of uncertainty for investors.
These include question marks whether investment decisions can be carried out by LIC management without interruption from the government.
It is also not clear whether LIC will be able to maintain its market share, with increasing competition for younger consumers than more new newcomers that are intelligent technology to the market.