India�s largest Initial Public Offering corporation LIC

Highlights:

The Union Govt. of India decided to disinvestment from its one of the largest insurance company LIC.
The Government of India is planning to sell 5% of its share in LIC.
LIC is Life Insurance Corporation. With this, the government is trying to raise Rs 65,000 crores.
10% of the shares are being reserved for eligible policy holders.
These shares will carry discounted prices.
The plan is to sell 316.25 million shares.
This is 5% of the total equity base.
The total equity base of LIC is 6.32 billion shares.
The pricing of IPO, Initial Public Offering, has not yet been decided. 35% of the shares are to be reserved for retail investors.
Discounts are to be provided to LIC employees.

Objectives:

The IPO is to help Government of India in achieving its target.
In the fiscal year 2021-22, the Government of India had set a divestment target of Rs 2.1 lakh crores.
However, the target couldn't be achieved.
For the fiscal year, 2022-23, the divestment target is Rs 78,000 crores.
The Embedded value of LIC is Rs 5,39,686 crores.
Embedded value is the measure of total value of the company.
This includes the future profits as well.
Also, it includes the value held by the share holders.