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LIC IPO: Govt likely to launch in last week of April

The IPO was supposed to go live in March, but it was pushed back owing to the slow market created by the Russia-Ukraine scenario. The government has approved to hold the largest initial public offering (IPO) of LIC between April 25 and 29.

LIC IPO Govt likely to launch in last week of April reports gcw
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New Delhi, First Published Apr 12, 2022, 2:44 PM IST

The much-anticipated initial public offering (IPO) of Life India Corporation of India (LIC) would take place in the final week of April, according to various media reports. The government is contemplating increasing the share it proposes to sell through a public offering from the 5% previously stated. The Russia-Ukraine conflict and its influence on the local stock market spurred the government to begin discussions on expanding the size of mega LIC IPOs.

The government may sell 5-6.5 percent of its stake in LIC in order to raise Rs 50,000-60,000 crore in the stock market. The IPO was supposed to go live in March, but it was pushed back owing to the slow market created by the Russia-Ukraine scenario. The government has approved to hold the largest initial public offering (IPO) of LIC between April 25 and 29.

The government had previously intended to launch its initial public offering (IPO) in March 2022. Due to market volatility induced by the Russia-Ukraine war, the government was unable to reach the previous deadline.

Also Read | Govt okays 20 percent foreign investment in LIC ahead of mega IPO

In the run-up to the mammoth IPO, the government submitted a draught red herring prospectus (DRHP) with the SEC on February 13, showing financial performance through September. The Sebi authorised the DRHP in March 2022. "LIC's updated DRHP with December financials has been filed," a firm official told PTI, adding that Sebi required it.

According to the most recent financials, the Life Insurance Corporation recorded a net profit of Rs 235 crore in the October-December quarter. The net profit increased to Rs 1,671.57 crore from April to December 2021, up from Rs 7.08 crore the previous year.

Also Read | LIC IPO: Know date, discounts, size of IPO and more

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