The Government of India on Sunday filed a draft of documents (DRHP) with capital markets regulator SEBI to bring the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) into the market. The embedded value of the company has been pegged at Rs 5.39 lakh crore ($72 billion). The embedded value is a major measure of future cash flows in life insurance companies. In such a situation, before coming to the market of the company's IPO, let us know some key things about it.
assets
As of September 30, 2021, LIC's assets under management (AUM) stood at Rs 39.56 trillion. This was more than three times the total AUM of all private life insurance companies in Asia's third-largest economy. LIC, the largest domestic institutional investor, has invested 25% of its AUM inequities.
competition
LIC has been able to maintain its market share at 66% even amidst competition with private companies. However, new business is growing at a slower pace than some other companies. LIC's gross written premium grew by 6.30% in the year ended March 2021, while that of SBI Life grew by 24% and that of HDFC Life by 18%. LIC's new business margin was 9.90% as compared to SBI Life's 20% and HDFC Life's 26.10%.
Policyholders and Agents
LIC has 283 million policyholders and the largest agent network in the country with 1.35 million registered agents. In the IPO, the firm will also earmark a certain percentage of shares for policyholders, which will not exceed 10% of the offered size while the share reserved for employees will not exceed 5% of the equity share capital. By the end of March 2021, LIC employed 114,498 people.
risk
In the draft prospectus, the insurance giant has flagged certain risks, such that it may require additional capital in the future and cannot guarantee that it will be able to deposit that capital "on acceptable terms or at all". . According to the filing, LIC may also need to infuse additional capital in IDBI Bank, which could put further pressure on its balance sheet.
Samsung Galaxy A13 and A23 launched in India, Galaxy M33 5G will knock on this day
Samsung has launched 2 new cheap smartphones Samsung Galaxy A13 And Galaxy A23 4G in India. Both the phones have Full HD+ displays and run on Google's Android 12 version. These have an octa-core
66 children lost their lives in enhancing the taste of cough-syrup: Deaths in the Gambia; Alert on 4 cough syrups made in India, WHO said - their 2 compounds are deadly
The World Health Organization (WHO) issued an alert on Wednesday regarding 4 cough syrups made by India's pharmaceutical company. WHO said that these products do not meet the standards. They are not
Allu Arjun Case: Will the police now go to heaven to arrest Sridevi? Why did Ram Gopal Varma say this?
Filmmaker Ram Gopal Varma has once again come out in support of Telugu star Allu Arjun. He recently criticized the arrest of Allu Arjun after the tragic stampede at the Hyderabad premiere of 'Pushpa
Salaar Collection Day 4: 'Salaar' is not stopping, collected such a huge amount in just four days
Salaar Box Office Collection Day 4: The film 'Salaar: Part 1-Ceasefire' from the south state is making waves at the box office. Every day the movie is progressing with great business. Looking at the
Ambedkar Jayanti: 133rd birth anniversary of Dr. Bhimrao Ambedkar, President Murmu-PM Modi took part in the celebrations
Dr. Bhimrao Ambedkar's 133rd birth anniversary celebrations were organized on the lawns of Parliament House. President Draupadi Murmu and Prime Minister Narendra Modi garlanded the statue of Dr.
Petrol Diesel Price: Today the price of petrol increased by 85 paise and that of diesel by 75 paise, know how much are the prices
Petrol and diesel prices have increased again today by the oil companies. The price of petrol has increased by 76 to 85 paise, while the price of diesel has also increased by 67 to 75 paise. In Delhi,
Munawar Faruqui in the custody of Mumbai Police late at night, the comedian was caught in a raid on a hookah bar.
Munawar Faruqui Detained: It seems that the police are keeping a close watch on the winners of 'Bigg Boss' these days. First, the police have fallen on Elvish Yadav and now Munawar Farooqui. Magalwar
PM Modi's Europe Visit: PM Narendra Modi arrived in Berlin, said- I believe that the friendship between India and Germany is strong
Prime Minister Narendra Modi is on a three-day visit to Europe. Modi reached Germany's capital Berlin on Monday morning. PM Modi left for Germany late on Sunday night. During this, PM Modi will meet
Missile case: Pakistan's response appreciated, questions being asked to India
"Anything that enters the airspace of any country is considered an attack. In such a situation, the defense rules and laws say that in case of a missile coming, you should also retaliate. So do not do
Covid-19: Corona active patients cross 1.35 lakh, more than 16 thousand cases in last 24 hours, 41 deaths
The number of active corona patients in the country remains above one lakh, which is a matter of concern. According to the data released by the Ministry of Health on Monday (August 8), the number of
