Jakarta –
State-Owned Enterprises (BUMN), Life Insurance Corporation (LIC) conducted an initial public offering (IPO). The IPO by the Indian SOE is predicted to be the largest in the country.
Quote from CNBC, Saturday (7/5/2022) LIC will offer around 22.13 million shares with an offered value of 902 to 949 Indian rupees, equivalent to Rp. US$ 11.78 to US$ 12.39 per share. If converted into IDR 168,454 to IDR 177,177.
Along with this IPO, the Indian government will release around 3.5% of the state’s stake in LIC for around US$ 2.74 billion or equivalent to Rp. 39.18 trillion (exchange rate of Rp. 14,300).
The LIC IPO was originally planned to take place last February. But the plan was delayed due to the Ukraine war and the flow of institutional funds from the stock market.
Since January, about US$16 billion of foreign capital has left India’s capital markets. The size of the LIC offer, which was originally pegged at 5%, was lowered to 3.5%.
So far, LIC has been trusted by millions of people in India and with a wide reach across the country. This insurance company is the second largest savings destination after bank deposits in India.
In 2019 and 2021, LIC holding household savings in India grew 3.4 percentage points to 19.4%. That’s above pension funds’ share of 16.7%, while bank deposits fell 7.1 percentage points to 29.4% over the same period.
LIC had a monopoly in the Indian insurance market until 2000 and is still the dominant player, controlling about two thirds of the life insurance market. In the fiscal year ending March 2021, LIC’s market share stood at 64.14%, down slightly from 66.22% in the previous year.
(fdl / fdl)
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