About a dozen analysts identified the listing of the life insurance behemoth as the most awaited event of the year.
“LIC is one of the most anticipated IPOs for Indian investors. Its valuation is believed to be in excess of Rs 11-12 lakh crore. For the size of the Indian market, this would be the mother of all IPOs, and this will soak up liquidity,” said Vinit Bolinjkar, Head of Research, Ventura Securities.
“We are expecting large participation from international investors,” he said.
On December 31, the government selected Milliman Advisors LLP India to discover the embedded value of LIC ahead of its IPO, in the first step of a long process for the listing of the state-owned insurer.
Analysts expect the government to name the transaction and legal advisers soon.
Axis Securities is keeping a close eye on LIC IPO, and expects overseas listing norms for Indian companies in 2021. These, the brokerage said, could potentially open the door for many startups to list overseas.
G Chokkalingam, Founder and Chief Investment Officer at Equinomics Research, is eagerly awaiting the IPO of stock exchange NSE, and believes the event can drive up the valuation for peer BSE.
In the first quarter of Calendar 2021, the Union Budget is going to be the major event, and investors would look out for steps like inclusion of fuel into the GST ambit and some GST relief for the auto sector, said Gaurav Garg, Head of Research, CapitalVia Global Research.
Bolinjkar on Ventura Securities said the introduction of Covid-19 vaccine would be another key event, as it is expected to remove the uncertainty about the possibility of a resurgence in Covid-19 cases and new restrictions.
The government has already announced January 13 as the kickoff date for the Covid inoculation process. India has already given nod for the emergency use of two Covid-19 vaccines.
Deepak Jasani, Head of Retail Research at HDFC Securities, hopes quick acceptability of reforms and progress on them may dictate economic trends in 2021.
Rusmik Oza, Executive Vice-President and Head of Fundamental Research at Kotak Securities, said the biggest event to monitor in CY21 could be any change in stance by the US Federal Reserve and other leading central banks post mass vaccination and recovery in the economies.
Equity markets across the globe witnessed spectacular recovery from their March lows, as central banks vowed to keep liquidity taps open to cushion the damage caused by the lockdowns.
If the stance reverses, inflows may turn into outflows. “This could trigger a reversal of the liquidity-driven rally,” he warned.