LIC IPO: If you also want to invest, then first know the ABCD of the company, why is the market waiting to lay its eyes?

LIC IPO: If you also want to invest, then first know the ABCD of the company, why is the market waiting to lay its eyes?

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New Delhi. LIC has taken another step towards launching its IPO in the stock market. Market regulator SEBI also submitted draft papers on Sunday. Now, along with the market, investors are also waiting for the IPO to open.

In such a situation, the question arises that what is so special that everyone is eagerly waiting for this IPO. In fact, while the company has disclosed that its Asset Under Management (AUM) in September 2021 was Rs 39.6 lakh crore. Since then the curiosity of investors has increased. Apart from this, there are some such things about the company, which investors wanting to buy IPO should know.

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LIC will be the country’s largest listed company
According to London-based Brand Finance, the market value of LIC is estimated to reach 43 lakh crores this year. By 2027, it can reach Rs 58.9 lakh crore. In this way, it will remain the largest company of the country for the next several years. Right now the largest company is Reliance Industries, whose valuation is around Rs 16 lakh crore.

New business premium growth also great
LIC’s profit after tax stood at Rs 1,437 crore in the first half of the financial year 2021-22. It was Rs 6.14 crore in the same period a year ago. In the first half of this financial year, the growth rate of LIC’s new business premium was 554.1 percent. It is the sixth largest insurance company in the world in terms of total assets with $522 billion.

Also read – LIC IPO: Small investors will get big stake, LIC has reserved 35 percent quota, know how to get benefit

Ownership will remain with the government
Right now the ownership of LIC is with the government. Despite selling 5 per cent stake in it, the government will remain its owner. According to the law, the government’s stake in LIC cannot be less than 51 per cent. Apart from this, the government cannot sell more than 25 percent of its stake in LIC during 5 years.

Strong Market Share and Return on Equity of LIC
LIC has a total share of 64.1% in the insurance market. Its return on equity is also the highest at 82 per cent. It is the third largest insurance company in the world in terms of life insurance premiums. Chinese insurer Ping’s return on equity is 19.5 per cent, while Aviva’s is 14.8 per cent. China Life Insurance has a return on equity of 11.9 per cent.

Tags: investment and return, IPO, LIC IPO

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