LIC IPO likely to open on May 4, close on May 9; aims to raise Rs 21,000 crore
The Securities and Exchange Board of India has approved the modified draught red herring prospectus, which specifies a 3.5 percent share sale rather than the 5 percent stated in prior draught documents, according to the reports.
FollowThe much-anticipated initial public offering of the Life Insurance Corporation of India is expected to begin on May 4, according to media reports, citing persons familiar with the situation. The offering is slated to finish on May 9, according to the article, with the anchor book for the LIC IPO set to open on May 2.
The Securities and Exchange Board of India has approved the modified draught red herring prospectus, which specifies a 3.5 percent share sale rather than the 5 percent stated in prior draught documents, according to the news channel.
Last Monday, the updated DRHP was filed to the market regulator. The government, which owns the insurance behemoth entirely, intends to raise Rs 21,000 crore by selling around 22 crore shares, corresponding to a 3.5 percent stake.
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According to insiders, the LIC board will meet this week to finalise the price band for the IPO. It was also said that the red herring prospectus would be filed to Sebi by April 27. According to the LIC Act, the government may set aside up to 10% for policyholders.
The government is aiming for a valuation of Rs 6 trillion for the insurance by demanding Rs 21,000 crore for the revised holding on the block.
The IPO, in particular, is critical to the Centre's effort to fulfil its disinvestment ambitions. The government expects divestment proceeds to reach Rs 65,000 crore in 2022-23, up from Rs 13,531 crore in the previous fiscal year.
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