Hype of uncovering the truth behind LIC's IPO

( Vol-11,Issue-4,July - August 2025 )

Author(s): K. Sathish, Nara Ashwini

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Page No: 025-032
DOI: 10.22161/ijaems.114.4

Keywords:

Life Insurance Corporation of India, Initial Public Offering, Public Sector Disinvestment, Grey Market Premium (GMP), Investor Confidence.

Abstract:

A study on an initial public offering (IPO) of the Life Insurance Corporation of India (LIC). As one of the most significant public listings in India’s history, LIC’s transition from a state-owned enterprise to a publicly traded company offers a unique case study to explore the interplay between market sentiment and financial performance. The study aims to determine whether pre-market indicators—such as the unofficial Grey Market Premium, subscription levels among diverse investor groups, and media narratives—accurately forecast the company's post-IPO performance. It reviews LIC’s financial data spanning the pre- and post-IPO periods, focusing on metrics like revenue, profitability, and cash flow, while also considering shifts in investor confidence and corporate Governance. Structured into distinct sections, the report begins with an executive summary to provide an overview of the main findings. This is followed by an introduction that contextualizes the IPO process and outlines the specific environment surrounding LIC’s market debut. The subsequent sections detail the study’s objectives, research Methodology, and data analysis before drawing conclusions that offer insights for investors, analysts, and policymakers.

Received: 08 Jun 2025; Received in revised form: 27 Jun 2025; Accepted: 03 Jul 2025; Available online: 08 Jul 2025

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