EGW Capital, the emerging market-focussed, US based blockchain investment bank, will tokenise the equity shares of the India's biggest life insurer “LIC of India” and will issue them over the blockchain as security tokens in an Initial Exchange Offering (IEO).
The IEO will be conducted on the BitLux OTC crypto exchange and few other exchanges in the month of October, 2020 or earlier as per the people closer to the transaction.
LIC's IPO is slated for the launch in the second quarter of 2021. The Indian Government, through its disinvestment initiatives, will attempt to raise US $30 bn by diluting upto 10% of its holding.
Post listing of the equity shares, the LIC will become the India's largest listed company overthrowing Reliance Industries Limited.
The blockchain tokenisation is a process of digitising the real world assets like equity shares, land and building and then issuing them over the blockchain in the form of small digitised / fractionalised tokens or shares for an enhanced liquidity and a wider reach.
Overall, in the process of tokenisation, the blockchain based tokens are made to represent the price movement of the underlying asset and those are traded by the investors without the need of being in the direct possession of the assets, much like as a mutual fund where a investor purchases fund units instead of directly purchasing and managing the portfolio of shares.