Started back on the 1st September 1956, a company that was going to change everything about India and its economy. A company that became the brand in it's self and the symbol of trust. Yes, we are talking about LIC (Life Insurance Corporation of India). When we say a piece can change everything. Yes, a paper of LIC can change everything. Company with the business of Nearly trillions of dollar having trusts of 1 billion and a biggest lender to every other PSU of our India. Now, it is going to create history with IPO offering of worth ₹13-₹15 lakh crore as one the biggest and blockbuster IPO of India.

What is IPO? IPO is known as Initial Public Offering. IPO means selling of the securities to the public in the Primary market. In the budget of 2020-2021, Govt. Of India had announced that it will plan for IPO of LIC and will also sell the equity of govt. in the baddly-ridden IDBI Bank. Remember LIC is the biggest stakeholder in IDBI Bank. The govt. has plan and it is expecting that by selling the stake of LIC and IDBI, it will raise ₹90000 crore and another ₹120000 crore from disinvestment. 

This IPO is very important and crucial for Indian government bas it will help in them to recover the fiscal deficit of our country. The fiscal deficit is high upto more than ₹175000 crore. With this very investment Govt.  will look over to maintain the budget deficit and it will open the path for it's future planning to disinvest other bigger PSU'S.

The biggest player who kept LIC alive for decades, the Policyholders are also going to be the important part of this blockbuster IPO. Government announced that 10% of IPO will be reserved for the policyholders and they will get the discount at the time of buying the IPO. Government has ammended The LIC ACT OF 1956 to list this IPO. LIC will now will be also under the guidance of the market watchdog, SEBI. Thus, LIC will have to maintain its record and have to submit the quarterly balance sheet to the SEBI and other public development. It will bring transparency in the business and thus will be guided according to the market force. Any investor who is willing to invest into LIC will freely invest in LIC. An independent retailer can help in the wealth creation of LIC. 

Hope this goes better and brings smile to everyone face.