While presenting the budget, the Finance Minister announced the launch of the IPO of LIC in FY 2021-22. If you are a LIC policyholder, then soon you have great investment options open.
LIC policyholders will get Reservation: Minister of State for Finance Anurag Thakur told about the LIC IPO in Parliament that up to 10% of its issue size will be reserved for the insured. Even after the IPO, the government will have a majority stake and will continue to control the management keeping in view the interests of the insured.
A Demat account is a must: Any investor can buy an IPO of LIC, provided he has a Demat account. Shares will not be available without a Demat account. Market regulator Sebi has made this rule, in which shares can be bought electronically by traders or LIC Holders. LIC’s IPO is expected in the second quarter.
Bumper Earnings Target: Finance has set a target of raising Rs 1.75 lakh crore from disinvestment in the financial year 2021-22. The government will raise this amount in the next financial year by selling its stake in two public sector banks and an insurance company. The government plans to reduce its 25 percent stake in LIC.
Expected to launch by October: During a recent interview, the Department of Investment and Public Asset Management (Deepam) Secretary has indicated the launch of LIC IPO near the month of October. LIC’s IPO was to come last year, but it was delayed due to some reasons.
Prior to the IPO, the department selected select axial firm Milliman Advisors to assess the value of LIC, while Deloy and SBI Cap have been appointed as pre-IPO transaction advisors.
Day by day earning methods are changing and we all have to follow the changes and develop new business and earn money from them. LIC is also providing a better opportunity to start a career as a LIC distributor and also giving this apart unity to buy LIC IPO.