LIC IPO | How UBS views PSU insurer vs listed friends forward of mega itemizing
In line with UBS, the market might be assigning a valuation low cost to LIC in comparison with its listed friends, owing to its historically savings-heavy enterprise combine, decrease working leverage, heavier dependence on the company channel and state-owned enterprise (SOE) standing.
Within the brokerage’s view, the market appears to be pricing in elevated competitors from LIC forward of its potential itemizing. LIC relies upon closely on the company channel not like non-public insurers, although the productiveness of the state-run firm’s brokers is considerably greater, UBS identified. (Learn extra)
Listed below are some highlights of what UBS stated:
–LIC to be third largest inventory in India by market cap
–LIC IPO measurement equal to 25 p.c of complete capital increase in 2021
–LIC largest institutional traders in Indian market with $ 520 billion in complete AUM
–LIC an vital entity for presidency
–LIC owns over 19 p.c of all authorities bonds, larger than RBI
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