LIC IPO likely to launch in early May, govt to sell over 5% stake

The government is expected to undertake the initial public offering (IPO) of Life Insurance Corporation (LIC) in early May. According to reports, it may propose to sell more than 5% of its stock in a public offering.

According to various media reports, the government is in contact with bankers and experts to finalise the company's red-herring prospectus for the initial public offering. They also stated that global economic worries have been taken into account, and market volatility has subsided.

The state-owned insurance behemoth has already gotten permission from capital markets regulator Sebi to seek cash through an initial share offering. According to the draught red herring prospectus (DRHP) submitted with Sebi, the government plans to sell around 31 crore equity shares of LIC, with a part reserved for anchor investors.

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.

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The government plans to raise Rs 63,000 crore by selling a 5% interest in the life insurance business in order to reach a disinvestment target of Rs 78,000 crore in the current fiscal year. The sum raised by Paytm's initial public offering in 2021 was the greatest so far, at Rs 18,300 crore. It was followed by Coal India (2010), which had a market capitalization of roughly Rs 15,500 crore, and Reliance Power (2008), which had a market capitalization of Rs 11,700 crore.

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• LIC
• LIC IPO
• SEBI
• Paytm
• IPO