Page 33 - Insurance Times December 2021

MAKING SENSE

OF THE MANIA

BEHIND

INSURANCE

IPOS

T he insurance industry in India has visibly However, they are yet to file the prospectus with SEBI. There

progressed since the time when businesses were
are more than 65 companies that filed prospectus with SEBI
tightly regulated and concentrated in the hands
this year. So far in 2021, more than 65 companies have filed
of a few public sector insurers. A well-developed
market regulator Securities and Exchange Board of India
and evolved insurance sector is a boon for economic their draft red herring prospectus (DRHP) with India's
development as it provides long-term funds for (SEBI). DRHP is a document that outlines the business of the
infrastructure development and concurrently strengthens company, its financial position, and the reasons for which
the risk-taking ability of the country. the company is raising money and how it will use it.

Currently the Finance Minister of India wants that the Meanwhile, 41 initial public offerings (IPO) have already been
strategic disinvestment of BPCL, Air India, Shipping listed on the BSE in 2021. From these -- Tatva Chintan
Corporation of India, Container Corporation of India, IDBI Pharma Chem, Clean Science and Technology, G R
Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, Infraprojects and Indigo Paints were some of the hits of 2021
among others, and IPO of LIC would be completed in 2021- as the IPOs of these companies got listed at about 75-105%
22. The IPO of Life Insurance Corporation of India (LIC) is premium over its issue price. The insurance business is a
the most awaited as it will be the largest in India's corporate relatively defensive industry that typically remains stable
history. The company will be raising Rs.70,000 crore. during fluctuations in the overall economy. Insurance
companies make money selling policies, but they also profit
About the author by investing the money they take in.
Jagendra Kumar
Amid global challenges, India has continued to develop as
Ex. CEO, an emerging economy with a financial system that has
Pearl Insurance Brokers matured, deepened and achieved scale. The needs of this
Jaipur emerging India are in many ways different, adding the

The Insurance Times, December 2021 33