ABOUT LIC -LIC is partly insurance and partly an investment agency. Their plans are an aggregate of insurance and investment with an assured return. LIC has excessive trust in the public for each life insurance in addition to investment done with them. LIC is synonymous with insurance in India. LIC manage asset of Rs 39 lakh crores. That is more money than the whole mutual fund industry combined. They are the biggest insurance company in India and the 5th largest insurer in the world. They own 4% of all stocks listed on the Indian stock market. WORKING-Effectively every time, when a person pays a premium amount , a small chunk of it will be set aside for death cover to be given to one`s dependents and heirs. And the remaining funds are invested in stocks and bonds. In some cases, death isn’t a necessary condition for the policyholder to gain from this arrangement. They’ll still get some money back after the policy expires and that is extremely attractive to a person.
SHARE WORTH 5 % EQUITY OFFERED – The Life Insurance Corporation of India (LIC) filed its draft red herring prospectus on February 13, 2022, to kick-begin the initial public offering (IPO) process. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey stated that 31.6 crore shares are offered to provide 5% of the authorities’ equity withinside the firm. The end of the LIC’s share sale thru an IPO through March 31, is crucial for the authorities to obtain its disinvestment goal for this year. The government will be entitled to the entire proceeds of the offer after deducting the offer expenses and relevant taxes thereon. . The government is expected to cater Rs 50,000 crore and Rs 1 lakh crore from the IPO, depending on the offer price. ADVANTAGES OF I.P.O –
1. It will give a boost to the government’s revenues and aid in bringing down the deficit.
2. Govt. will obtain Disinvestment Goal for this financial year.
3. . Investors will be able to actively trade in its shares on the stock exchanges.
4. More transparency LIC, which is now answerable only to the government, will have to inform investors and exchanges details of all price-sensitive information.
DETAILS - Issue Type Book Built Issue IPO Face Value ₹10 per equity share IPO Price [.] to [.] per equity share Market Lot Min Order Quantity Listing At BSE, NSE Issue Size 316,249,885 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) Offer for Sale 316,249,885 Eq Shares of ₹10 (aggregating up to ₹[.] Cr)
RUSSIAN – UKRAINE WAR – Russia has destroyed peace and tranquility in Ukraine by air, land, and sea. Russia has launched a devastating attack and invasion of Ukraine. Its forces are bombing city centers and reaching the capital, Kyiv, prompting a mass exodus of refugees in neighboring European countries.
BACKGROUND LEADING TO WAR-, Zelenskyy cracked down on pro-Russian Ukrainian oligarchs, including Viktor Medvedchuk, IN 2021. Subsequently, Putin deploys increasing numbers of troops near the Ukrainian border and Putin issues demands to NATO and Ukraine
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Among these demands is that Ukraine never is admitted to NATO. Ukrainian regions of Donetsk and Luhansk were recognized as independent states and sent troops in to “keep the peace.”. The invasion began in the territory of Donbas. Zelinsky declared martial law in Ukraine and officially broke diplomatic ties with Russia LIC IPO DELAYED -
IMPACT ON ECONOMY – The impact of the Russian-Ukraine conflict on the Indian economy can't be ignored. It has caused oil prices to surge and the stock markets to crash. Oil prices have surged nearly 40 percent since December 1, 2021, when it was trading at $69.5, the benchmark Sensex at the BSE fell by over 1,250 points and hit a day’s low of 56,394. The rupee also fell 33 percent or 0.44 percent to hit 74.84 USD. WAR TO DELAY LIC`S INITIAL PUBLIC OFFERINGSThe central government is likely to review the timing of launching the initial public offering (IPO) of LIC amid the ongoing war between Russia and Ukraine, Finance Minister Nirmala SAID. In an interview with the Hindu, FM Sitharaman said 'ideally' the government would like to go ahead with the much-awaited mega IPO. However, if global circumstances demand, the FM said she won't hesitate to look into it again.
CONCLUSION BIGGEST IPO IN INDIA- the LIC public issue would be the biggest IPO in the history of the Indian stock market. Once listed, LIC's market valuation would be compared to top companies. The IPO for5% equity will give Employees and policyholders of the insurance behemoth and they would get a discount over the floor price. The ongoing conflict between Russia and Ukraine may impact the overall world economy. Government in my opinion in order to get a fair share after diluting 5 % share in LIC must get fair money value too. So in the light of interest of the government of India initial public offerings should be delayed. LIC ipo must be delayed for the next Financial year in 2023 .Government along with Finance Ministry must reassess IPO`s March listing
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The war will have impact on oil import dependent countries
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