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Why do companies opt for IPO?
Companies decide to go public when they earn profits and capital returns and if the public demand for the company’s share increases. This process is also known as Initial Public Offering or an IPO. When the company wants to raise its capital further and extend its reach, it opts for IPO.
Why should a company IPO?
An IPO allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes a share premium for current private investors.
Is EquityZen safe?
Yes, EquityZen is “legit” in the sense that it is a legitimate, regulated business and a legitimate alternative investment opportunity for accredited investors. EquityZen is among a growing crop of crowdfunding and online alternative investment platforms, most of which have launched in the wake of the 2012 JOBS Act.
Which is better SharesPost or EquityZen?
The biggest difference is that there’s a $175K minimum sale size (as opposed to $100K with Forge/Sharespost), but EquityZen allows sellers to pool their shares together. Besides that, Forge/SharesPost offers a full-blown marketplace experience while EquityZen has a simpler messageboard-like look and feel.
What you need to know before investing in LIC IPO shares?
Here are few things we need to know about before investing in LIC IPO shares: Ms. Nirmala Sitharaman, the finance minister, first announced the disinvestment of equity in LIC in the Union Budget 2020. An amendment has been made in the LIC Act,1956 to facilitate the roll-out of IPO.
What are the changes in the LIC act to facilitate IPO?
An amendment has been made in the LIC Act,1956 to facilitate the roll-out of IPO. The amendment indicates the LIC will become a listed company and prepare quarterly earnings reports and balance sheets. Moreover, any developments within the company must be made public.
What is LIC’s Investment Strategy?
While investing in the equity markets, LIC follows a ‘contrarian’ investment strategy, which is ‘sell’ when the sentiment is bullish and ‘buy’ when the mood is bearish. Every year, the life insurer books a profit of Rs 18,000 crore to Rs 25,000 crore in equity profits alone.
How much has LIC invested in the equity market in 2019?
In 2019, LIC is looking to invest Rs 3.49 lakh crore into debt and equities. In the first half of FY20 itself, LIC has invested around Rs 33,500 crore in the equity markets. The second half (H2) is better in terms of investments since individuals start buying life insurance for tax saving purposes from October onward.