Public Market

IPO

DRHP filed for LIC IPO, govt to offload 316-M shares

Mint  

The government plans to sell a 5% stake in the initial public offering of state-run Life Insurance Corporation of India. It will sell about 316 million shares in the wholly owned insurer. LIC's so-called embedded value, a key metric for insurers that combines the current value of future profits with the net value of assets, is pegged at INR 5.4 trillion (USD 72 Billion). With 2,000 branches, more than 100,000 employees and about 286 million policies, the Mumbai-headquartered company reaches practically every corner of the country. The 65-year-old firm has nearly USD 530 billion in assets and 250 million policyholders and makes up almost two-third of the market. As much as 10% of the shares being offered will be reserved for policy holders, and another 5% for employees.