- 'Something was wrong', defendant in French mass rape tells court
- Hezbollah chief admits 'unprecedented' blow in device blasts
- Sales of US existing homes slip slightly in August
- Fear, panic haunt Lebanese after devices explode
- Labuschagne sparks Australia fightback in England ODI opener
- S.Africa's HIV research power couple says fight goes on
- Why is Israel focusing on border with Lebanon?
- Mpox vaccines administered in Rwanda, first in Africa
- US Fed rate cut is 'very positive sign' for economy: Yellen
- Unknown Mozart string trio discovered in Germany
- 'Are we five-year-olds?' F1 drivers won't mind their language
- Brazil judge orders X to reimpose block or face hefty fine
- Munich to rename stadium street after Beckenbauer
- Champions Italy to face Argentina in Davis Cup Final 8
- The winding, fitful path to weight loss drug Ozempic
- Italians defeat American Magic to reach Louis Vuitton Cup final
- Norris has 'nothing to lose' as he hunts Verstappen in Singapore
- Kyiv 'outraged' at Swiss showing of Russian war film
- French city renames Abbe Pierre square after abuse claims
- Footballer charged after huge cannabis seizure at UK airport
- Vatican recognises Medjugorje shrine, but not Virgin's messages
- Israel bombs Hezbollah strongholds in Lebanon after wave of deadly blasts
- Bank of England freezes rate after jumbo US cut
- Playing Nadal is 'kind of a nightmare', says Alcaraz
- Portugal tackles last of deadly northern forest fires
- Ton-up Ashwin lifts India to 339-6 against Bangladesh
- Departing NATO chief warns US against 'isolationism'
- Coming winter 'sternest test yet' for Ukraine energy grid
- Evacuations as tail of Storm Boris floods northeast Italy
- Lebanon's Hezbollah reeling after second wave of deadly blasts
- Taiwan recognises same-sex marriages between Chinese, Taiwanese
- Stock markets rally after jumbo US rate cut
- Gabon's ousted leader Bongo says renouncing politics for good
- Lebanon device blasts: what we know about deadly attacks
- Equity markets rally after jumbo US rate cut
- Late Harrods owner Al-Fayed accused of rape: BBC
- Hong Kong man sentenced 14 months for wearing 'seditious' T-shirt
- Lebanon's Hezbollah in disarray after second wave of deadly blasts
- Equity markets, yen rally after jumbo US rate cut
- Meta and Spotify blast EU decisions on AI
- Hasan takes three as Bangladesh rattle India in first Test
- Two killed during police operation in New Caledonia
- Flood-hit region leaders to meet in Poland to discuss EU aid
- Sri Lanka to vote in first poll since economic collapse
- Hong Kong probe finds Cathay Airbus defect could cause 'extensive' damage
- AI development cannot be left to market whim, UN experts warn
- All Blacks primed for 'hell' of a Wallabies clash
- Japan firm says no longer makes radio reportedly used in Lebanon blasts
- Zoom fatigue? Try some nature in your background: study
- Boeing to start large-scale furloughs with Seattle strike talks stalled
RBGPF | 5.79% | 60.5 | $ | |
CMSC | -0.18% | 25.01 | $ | |
BCC | 3.81% | 142.495 | $ | |
BTI | -0.54% | 37.675 | $ | |
GSK | -1.03% | 41.996 | $ | |
SCS | -7.79% | 13.09 | $ | |
BP | 2.2% | 33.158 | $ | |
RYCEF | 5.48% | 6.93 | $ | |
NGG | -2% | 68.675 | $ | |
RIO | 3.8% | 65.395 | $ | |
JRI | -0.37% | 13.39 | $ | |
VOD | -1.74% | 10.055 | $ | |
CMSD | 0.4% | 25.08 | $ | |
BCE | -0.48% | 35.44 | $ | |
RELX | 1.33% | 48.01 | $ | |
AZN | 0.66% | 79.105 | $ |
Why India's largest insurer is being listed?
India is embarking on the blockbuster listing of the country's largest insurer as part of a wider privatisation drive to bolster public coffers drained by the coronavirus pandemic and fund new infrastructure.
While the pricing has not yet been set, analysts expect the IPO of the Life Insurance Corporation of India (LIC) to be India's largest to date, potentially earning the government more than $10 billion.
After the listing, which is expected in March, LIC will be one of India's biggest publicly listed companies alongside giants such as Reliance and TCS.
- How big is the firm? -
LIC was created in 1956 and was synonymous with life insurance in post-independence India until private firms were allowed entry in 2000.
The company holds a two-thirds share in the domestic life insurance market. It manages assets of 36.7 trillion rupees ($491 billion), which equates to nearly 16 percent of India's gross domestic product.
It has more than 100,000 employees and one million insurance agents.
LIC's real estate assets include big offices at prime locations in various Indian cities, including a 15-storey building in the southern city of Chennai and a distinctively curved head office in the heart of Mumbai's financial district.
The firm is also believed to own a large collection of rare and valuable artwork that includes paintings by MF Hussain -- known as the Pablo Picasso of India -- although the value of these holdings has not been made public.
- Why is the IPO taking place? -
Asia's third-largest economy was already grappling with a prolonged slowdown even before the start of the coronavirus pandemic. India has recorded its worst recession since independence due to the Covid-19 crisis.
Efforts to contain the spread of the virus, such as through stringent lockdowns, created a significant budget deficit and pushed millions into joblessness and poverty.
The IPO of LIC will give a boost to the government's efforts to raise much-needed cash through privatisations, which are running badly behind schedule.
The government has raised just 120.3 billion rupees by selling stakes in various state-owned entities this financial year, well short of its target of 780 billion rupees.
Srinath Sridharan, an independent markets commentator, likened LIC to one of the Indian government's "family jewels".
- Is it an attractive investment? -
LIC is a household name in India and has a strong grip on the life insurance market in the vast South Asian nation despite the entrance of private players.
The company is offering its millions of policyholders the opportunity to invest in the IPO at a discount, promoting the offer through television advertisements and full-page newspaper ads.
Analysts expect retail investors, including many first-timers, to show strong appetite for snaring a stake in the venerable company.
But there are numerous uncertainties for investors. These include question marks over whether investment decisions can be made by LIC management without interference from the government.
It is also unclear if LIC will be able to retain its market share, with increased competition for younger consumers from more tech-savvy new entrants to the market.
O.Bulka--BTB