LIC is planning roadshows in Hong Kong, UK: Here's why
It's been over a year since the Life Insurance Corporation of India (LIC) became a public company. The insurance behemoth's big bang listing hasn't turned out the way everyone hoped it would. Now, it is heading to Hong Kong and the UK to hold international roadshows. They will be held later this month. Let's see why LIC is planning roadshows outside India.
Why does this story matter?
LIC's initial public offering (IPO) was the biggest India has ever seen. The government raised Rs. 20,557 crore from the IPO. Its shares are currently trading nearly 40% below the issue price of Rs. 949. Despite its less-than-stellar performance in the market, the insurance giant had a fruitful fourth quarter and FY23. Therefore, the roadshows are bound to attract some attention.
Roadshows will be held between June 25 and June 29
LIC's international roadshows will begin in Hong Kong. The 'non-deal roadshows' are scheduled between June 25 and June 29. After Hong Kong, the company will head to the UK. The insurance firm last conducted roadshows before its IPO in February 2022. Post-IPO roadshows are generally conducted to create awareness about the company among global investors.
Non-deal roadshows are conducted to pique investor interest
As the name suggests, non-deal roadshows do not involve the sale of anything. They are conducted to offer investors a complete look at the company's story. In non-deal road shows, companies generally try to pique the interest of institutional investors in something that is coming up for sale. It is a proven way to enhance communication between company executives and investors.
LIC will urge investors to invest in its shares
In LIC's case, the insurer will meet with global investors through a series of meetings from July 25 to July 29. Executives will try to highlight the strength and potential of the company during these meetings. As expected, managers will urge investors to invest in LIC's stocks. It is unclear which companies will participate in the meetings.
Analysts still see massive potential in LIC
Many analysts believe LIC's stocks hold huge potential. Today, the shares closed at Rs. 597.05, down by 0.81%. In the past year, it has not reached anywhere close to its issue price. However, if the company manages to bag global institutional investors, it will lead to an uptick in its prices. Nine out of 15 analysts strongly recommend buying the stock.
