LIC IPO News: LIC May Be Valued At Rs 15 Lakh Crore, Will Make It Second Largest Company In India

LIC IPO: The valuation of Rs 15 trillion will make the company second only to Reliance Industries Ltd. Tata Consultancy Services (TCS), which is currently in second place, will move to the third place.

New Delhi: LIC might become the second largest company in India. According to a report by Economic Times, the company is eyeing a valuation of Rs 15 lakh crores ($203 Billion/ Rs 15 Trillion). This valuation will make the company second only to Reliance Industries Ltd. Tata Consultancy Services (TCS), which is currently in second place, will move to the third place. The LIC IPO will be the biggest IPO in the country, according to various media reports.

According to ET, the embedded value of LIC is likely to be over Rs 4 lakh crore and its market value could be four times the embedded value, nearing it to around Rs 15 trillion. However, the final report of the firm’s value is yet to come out.

The final value of the company, according to the report, is based on various parameters including profitability outlook and investor appetite. However, usually, the value is three to four times the embedded value.

Earlier in the week, it was announced that the life insurer will issue a LIC IPO prospectus at the end of January 2022. According to Finance Minister Nirmala Sitharaman’s comments, the LIC IPO will hit the bourses in the current fiscal (2021-2022) itself. This means, within the next three months, the country will probably see the biggest IPO of the country ever, take the floor.

The report also added that the Central government is planning to sell around 5 to 10 per cent of the shares of the company by the end of March 2022, to cover the widening budget deficit due to the Covid-19 pandemic.