Lic ipo and future of lic
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Insurance sector is underpenetrated sector in India LIC is market leader thanks to commissions should we invest in LIC IPO and what will be the future of the company post ipo.
Government will sell at a premium no doubt
But what will the future prospectus
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Just like IRCTC
Govt forced LIC to buy NPA assets to bail out Banks and other companies
Now LIC is sitting on huge NPA assets.
Then Govt is exiting LIC.
What does that tell you?
Read economics news section on reputed major newspapers like hindu,toi etc not whatsapp/youtube rumors. 
Govt is not exiting LIC (which requires a parliament procedure lengthy enough to create a large ruckus by entire opposition),it is just decreasing its stake from 100% to 90-85%. LIC current npa is 6.01% which is similar to icici bank 6.37% npa,nowhere near to be of any significant concern compared to public sector banks like IDBI,UCO & IOB having 20%+ npa & all others between 10-20% with only sbi,Indian bank & canara bank having less than 10% npa.
https://www.livemint.com/industry/banking/care-...
In my simple understanding, govt needs money & LIC ipo will bring that. But it’s a sinking ship. Modi tries to make 5 trillion economy but may end up bringing economy at halt. Disc- i’m pro-bjp still.
…Modi will rename indian economy as 5 trillian economy in 2024….done….
…after u sell HAL,BPCL,HPCL blah blah blah and LIC…what after that…GOI has spent RBI’s money as well…to meet their fiscal deficit target they are selling family’s silver…
…what if economic conditions remains the same or worse….what if we have a bad monsoon year or two?….
….LIC should not be touched coz its the lifetime earning of an honest middle class man….
….and those who believe in the fact that LIC after IPO will become better, more efficient…My question is why middle class guys still prefer PF and LIC despite the fact that mutual funds and shares have seen exponential growth…The reason being the assurity of LIC…they don’t want more money or better growth they want stability and assurity which market and open nature of market will not provide.
…Things start from 5% and before you see some springs they tend to reach 45%….Bad step…
India is probably the only country in the world where left or right,both opposes privatization/less govt control in economy & result is in front of everyone.China’s economy left this nation’s economy behind in dust & in next 10-15 years Bangladesh too will left it behind. My question is, is govt your neighbourhood shop or some family enterprise holding on to these “family silver”. No knowledgeable enough person takes insurance policy for investment & those who do gets neither a good insurance policy nor a good investment option. Also those who don’t change with times & stick to old/outdated beliefs will never make it to the top aka why many are born in middle class & live their entire life as middle class while some born in even poor family & become rich in few decades.
So tell me which has more chances of occurring: A politically controlled company/organization going from 5% to 45% npa(to refresh your memory just in case,Air India was once considered as one of the best airlines in the world & people used to celebrate in 90s when they get a bsnl landline connection) or a professionally run company(again to refresh your memory,hdfc bank share price was Rs.20 in 2002 & now its market capitalization is more than all public sector banks combined).
•Govt sold 45% of Hindustan Zinc for Rs 769 cr in 2002. Its 30% stake is now worth Rs 27,000 cr
•Air india was once more profitable than Reliance. Har cheez ka ek sahi time hota hai. And i am pretty confident of our govt’s (whether bjp, cong, xyz) ability to ruin all psus. Better to leave them in their golden days.
Govt has no business to be in the business and no one is talking about complete exit. They shall decrease their stake < 51%, and exit mgt.
@still_guessing
Future prospects are as good as any other good company.Those who get lucky(& by that I mean extremely lucky) & get shares in LIC IPO will make a large profit on listing day itself.