LIC is taking every step possible to evaluate its price and prepare for IPO. However, it is unlikely that the state-owned insurance corporation would go public during the upcoming financial year. Life Insurance Corporation is taking more time than expected to prepare itself to go public, which may force the public offering to the next financial year.
Even though the valuation of the corporation is evaluated, several regulatory processes are yet to be solved. Along with the vetting of the Securities and Exchange Board of India (Sebi), LIC needs the vetting and approval of the Insurance Regulatory and Development Authority of India (IRDAI).
The size, product mix, subsidiaries, profitability sharing structure, real estate assets are all the factors that are making the valuation of LIC a complex process. Along with that, the share price of LIC depends on its valuation. Though the Government is confident and has refuted the speculation about its delay, the state says that it is ‘On Course’ and will be introduced in the last quarter of the current financial year.
