PrimeDatabase analyzed data and revealed that at INR 65,000 crore, the size of the LIC IPO is higher than the cumulative amount that has been raised during any calendar year other than 2017 and 2021. In 2017, the amount raised from 36 IPOs raised included INR 67,147 crore in all, and last year’s amount of INR 1.19 lakh crore was increased from 63 issues.
More about what is LIC IPO in the paragraphs below.
When is LIC IPO Coming – LIC IPO Launch Date
The LIC IPO is expected to be open to the public on March 11th, 2022. Many believe that this initial public offering is crucial for the economy. Let us know more about the same here.
The Union Budget 2022-2023 has revised the government’s disinvestment target for FY22 that shows downward of INR 78,000 crore from amongst the budgeted estimate of INR 1.75 lakh crore. For FY23, it is seen that the target has been dropped or pegged further low at INR 65,000 crore. To date, the government has raised just INR12,029 crore from the disinvestment carried out of the minority stake in a few public sector companies and using Air India privatization. The LIC IPO is crucial because it is anticipated that the remaining INR 66,000 crore would be through the launch of the LIC IPO, which makes it essential for the economy.
Is It Crucial for The Markets as Well?
If you want to invest in the LIC IPO, you must have a Demat account. It may be mentioned here that LIC or Life Insurance Corporation of India has reserved around 35% of the total IPO size for retail investors. Also, as per experts, the number of Demat accounts that are expected to open afresh in the country is anticipated to rise remarkably. If such a scenario arises, government revenue through STT or securities transaction tax is expected to escalate.
How much Liquidity will be Siphoned out of the Market following LIC IPO?
Experts believe that due to the launch of the IPO of Life Insurance Corporation of India, as much as INR 70,000 crore might disappear from the market. Due to the same reason, many companies that had plans to launch their IPOs following approval from SEBI have delayed their plans. This is because investors will be saturated after investing in LIC IPO, and the appetite for further investment might appear to be subdued for the moment. These same companies are waiting for the completion of the initial public offering of LIC and for the market to stabilize after that. The LIC IPO expected share price can be any figure between INR1500 and INR 3200 per share.