LIC IPO: Supreme Court refuses to stay allotment
By Team Newsable | First Published May 12, 2022, 2:10 PM ISTSupreme Court, however, agreed to hear the challenges to diluting the government's shares and petitions against LIC's IPO.
The Supreme Court refused to halt the ongoing process of Life Insurance Corporation of India's initial public offering on Thursday. This means no intervention will be made in the current share allotment process.
Supreme Court, however, agreed to hear the challenges to diluting the government's shares and petitions against LIC's IPO.
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The apex court ruled that no case for interim relief could be made out. According to the Supreme Court, the Centre or LIC must respond within eight weeks, and petitioners must respond within four weeks. These proceedings will be associated with a case before the Constitutional Bench.
A bench of Justices DY Chandrachud, Surya Kant, and PS Narasimha, who heard a batch of petitions filed in the SC, made the decision.
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The petitioners questioned the legality of the government's decision to launch the LIC's IPO via a Money bill.
India's Additional Solicitor General, who represents the central government, stated that this is one of the largest IPOs in Indian history. More than 73 lakh people applied, and over 22.13 crore shares were sold at a premium of Rs 939 per share.
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Meantime, Shyam Divan, senior advocate, argued on behalf of the petitioners, that the legality of the government's decision to sell the LIC IPO through a Money bill must also be considered. He claimed that it could not have been passed as a money bill because it involved public rights.
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