LIC’s 652 !!! Page DRHP is finally here. I can assure you reading this will be a great experience in learning about companies , businesses and markets.
Let’s use this thread to post all the interesting data and summaries of the biggest IPO ever possibly
Disclaimer about the conflict of interest (w.r.t Govt and Other Shareholders)
This is great to see that the disclosure standards of the company are pretty high. As expected, it clearly states that the company can take decisions at times which may not be fully favourable to the shareholders.
In future, when LIC is listed and the markets are correcting, would LIC buy LIC stock. Generally when markets are correcting DIIs support the market by buying stocks at a lower levels, does that mean LIC would buy its own stock, as LIC would definitely be in NIfty 50?
The IPO is still not near. Global uncertainty and conflict have already brought down the market mood and Government wants the best possible;e return from this IPO as this is their magnum opus.
Yaa LIC does have a Mutual Fund house (which I just googled about), but I was wondering as LIC has stake in a lot of stocks, and the return they get is passed on to the unit holders, would they be able to invest in LIC or not(on behalf of the unit holders)
Company buying its own stock (regardless of intent) is buyback. And there are separate regulations for it.
So while LIC mutual fund scheme can buy LIC stock OR LIC can buy Index ETF (in which LIC will also be present), But LIC will be unable to buy LIC share directly from market.
Only way to do that would be to go through buyback route.