Investors should not worry too much about LIC's market share
but should look at how the business is run, how risks are taken, the cost of
acquiring customers, and VNB margins, says ithought Financial Consulting's
Shyam Sekhar
The stage is set for state-owned Life Insurance Corporation
of India's (LIC) mega initial public offering (IPO) in March. The insurance
behemoth filed its draft red herring prospectus (DRHP) on February 13,
preparing the ground for what is being billed as the mother of all IPOs in
India. Moneycontrol's Preeti Kulkarni and Jash Kriplani spoke to Shyam Sekhar,
founder of Chennai-based wealth management firm ithought Financial Consulting
LLP, to find out how retail investors and policyholders should approach this
investment opportunity.
The LIC IPO is a big opportunity for retail investors to
participate in a public issue of this scale. Bear in mind that before coming up
with the public issue, LIC made some changes that are investor-friendly and
should be positive for its shareholders in future. So, in that sense, LIC is
well prepared for this IPO and, after this, if the company improves its
performance in areas where it is weaker, then there will not be much cause for
concern for shareholders. It is a very decent IPO to invest in.
0 Comments