03/02/2021
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* Regarding the news of privatization of LIC: *
1тГг * The first question people have * тЭУ
LIC IPO proposal was tabled in the budget yesterday. The privatization of LIC sparked such a flurry of news, and people did not understand exactly what happened to LIC ..? *
* Answer *:
Let's understand this process in very simple language.
* IPO: Initial Public Offering *
This means * making an organization available to the public in the stock market * and maximizing * capital formation * from it.
If the share of a powerful organization like LIC becomes available to the people ... ??тА╝
So * LIC will emerge as the largest stock market organization in the country * ЁЯПв (even bigger than Reliance Industries and Tata Consultancy) * * *
Investors will rush to buy the shares of LIC, which has * more than 70-75% share of total business in India and may become the * largest listed institution in India * ... ... *
This means that the * share price of LIC will increase a lot, * that is, the capital of LIC will also increase, which will * have a very good effect on the profit of LIC .. *
* The higher the benefit of LIC, the higher the bonus to the customer ... *
2тГг
* Second question: *
* Will LIC be government or private now? *
* Answer *:
Currently, all the state-owned banks *(State Bank, Bank of India, Bank of Baroda, Punjab National Bank, etc.) are listed on the stock market, along with * all state-owned oil companies * ЁЯПЧ (Indian Oil, ONGC, India) Petroleum, Hindustan Petroleum etc.) are also * listed on the stock market *,, * so did those banks, companies become private? *of course not ..
Similarly, even if some shares of LIC are made available to the general public for purchase in the stock market, LIC will remain a government institution. * тЬ│ Therefore, the statement that LIC will be private is not true. Also * customers have nothing to worry about. *
* ЁЯОЙ Probably due to capital increase, LIC in India, the largest in life insurance could become the largest life insurance company in the world. *
* People will not be confused if the media gives ЁЯУИ information of possible growth instead of just giving shallow news. *
* (Life Insurance Corporation of India) *
I am Financial Planner having 7 years experience in the financial market. I am working for the C***c
