Public sector company Life Insurance Corp (LIC) is launching its IPO in March. There is a lot of enthusiasm among the investors about this IPO.
The company’s chairman MR Kumar says the insurance company is monitoring the situation arising out of Russia-Ukraine tensions, but is very serious about listing an initial public offering (IPO) in March.
Not only this, the company plans to create a separate digital vertical to increase market share while reducing dependence on its agents. Kumar said that we want to have an entire vertical, which is digital. This will be in addition to our plans to review and upgrade our existing online channel.
The market share of LIC has declined from 68.05% to 61.4% in terms of premium income. The 55-year-old state-run insurer has lost nearly 13 percentage points in market share compared to private life insurers since June 2020.
Effect of Russia-Ukraine tension on the stock market
It is noteworthy that the effect of Russia-Ukraine tension is visible in the form of volatility in the stock market. LIC, which is preparing to bring its IPO next month, has submitted the issue prospectus with the Securities and Exchange Board of India (Sebi).
Biggest IPO ever
This is the biggest ever IPO in the country, through which it is proposed to raise Rs 63,000 crore by selling 5 per cent stake of the government through offer for sale.
Sold shares worth Rs 15,342 crore
Foreign investors sold shares worth Rs 15,342 crore and bonds worth Rs 3,629 crore between February 1 and February 18, according to depository data.
While he invested Rs 115 crore during this period, Kumar said the profits of insurance companies cannot be compared with that of any manufacturing firm. He said this is because the nature of the two businesses is very different.
