LIC IPO Final Papers: The Centre is will soon be filing the final papers for India’s mega LIC IPO soon. The government is planning to soon file the final papers for LIC IPO with market regulator Sebi, which will provide details about the price band, discount for policyholders and retail buyers, and the actual number of shares to be put on the block, an official said told PTI.
LIC IPO: Timing to List Yet to be Decided
The government is presently in the wait-and-watch mode because of the market volatility induced by the Russia-Ukraine war and will decide on the timing of the initial public offering (IPO) of Life Insurance Corporation (LIC).
On Tuesday, the Securities and Exchange Board of India (Sebi) has cleared the draft red herring prospectus (DRHP) of the state-owned Life Insurance Corporation of India (LIC). However, News18.com has learned from its sources that investment bankers have suggested that they would want to wait until an improvement in market sentiment, which is prevailing due to the ongoing geopolitical factors.
Government Hopes to Launch IPO Soon
The government hopes to launch the initial public offering (IPO) of the Life Insurance Corporation of India (LIC) as soon as stock market volatility, sparked by the Russian invasion of Ukraine, recedes, said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey.
The draft red herring prospectus (DRHP) of LIC has received “prima-facie” clearance from the Securities and Exchange Board of India (Sebi), subject to fulfilment of certain requirements, Pandey said at an industry interaction.
“We may be good to go and we are watching the market situation and hopefully we should be able to bring out the IPO soon,” Pandey said at the interaction, organised by the Merchants’ Chamber of Commerce & Industry.
There are certain external factors affecting the markets because of the conflict in Europe, and the government is watching the situation carefully, Pandey said.
“We hope that things will recover, oil prices will probably cool off, and our hope is that the volatility in the market will also come down as the markets engage with the new realities,” he said.
LIC IPO: India’s Largest IPO
At a 5 per cent stake dilution, the LIC IPO would be the biggest ever in the history of the Indian stock market and once listed, its market valuation would be comparable to top companies like RIL and TCS.
During the current financial year so far, Rs 12,423.67 crore has been obtained through OFS, employee OFS, strategic disinvestment and buyback.
As per the draft prospectus, LIC’s embedded value, which is a measure of the consolidated shareholders’ value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
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