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LIC IPO: Know date, discounts, size of IPO and more

Policyholders and investors are anxiously awaiting word on the opening date of Life Insurance Corporation's (LIC) massive initial public offering. Previously, the much-anticipated share sale was due to reach the markets on March 31.

LIC IPO Know date discounts size of IPO and more gcw
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New Delhi, First Published Mar 21, 2022, 2:49 PM IST

Policyholders and investors are anxiously awaiting word on the opening date of Life Insurance Corporation's (LIC) massive initial public offering. Previously, the much-anticipated share sale was due to reach the markets on March 31. However, owing to market volatility caused by the continuing Russia-Ukraine conflict, the government has been obliged to reassess the launch date. The administration has yet to decide on this matter.

Launch details: 
According to Reuters, the LIC IPO, which is expected to be the country's largest-ever initial share offering, will be postponed until mid-April. The government has until May 12 this year to conduct the initial share sale, according to the draft documents or Draft Red Herring Prospectus (DRHP) of LIC's IPO. If the government delays the launch of LIC's IPO beyond May 12, new draft documents must be submitted. On February 13, the draft documents were submitted to the Securities and Exchange Board of India. SEBI has given its approval to the DRHP.

Also Read | Russia, Ukraine crisis may force govt to delay LIC IPO

Price, discount to employees: 
Employees and policyholders of the national insurance would be eligible for a reduction of the floor price. According to the DRHP, policyholders must link their PAN numbers to their LIC policies in order to participate in the next LIC's IPO and receive a discount off the floor price.

Size details: 
The government would sell around 31.6 crore shares, or a 5% stake in the insurance behemoth, for an estimated 60,000 crore to the exchequer. The public issue was supposed to be launched in March, but the Russia-Ukraine situation has thrown a wrench in the works.

Also Read | The Indian companies which had to delay their IPO plans

At 5% stake sale, the LIC IPO will be the largest in Indian stock market history, and if listed, LIC's market capitalization would be equivalent to top businesses like RIL and TCS. So far, the sum raised from Paytm's IPO in 2021 has been the highest ever at 18,300 crores, with Coal India (2010) raising almost 15,500 crores and Reliance Power (2008) raising 11,700 crores.

Also Read: LIC issues important notice to its policyholders and customers

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