LIC IPO: If the government is not able to bring the IPO by May 12, then it will have to file fresh papers with SEBI stating the results of the December quarter.
LIC IPO: The government has time till May 12 to bring the IPO of Life Insurance Corporation (LIC) based on the documents filed with the Securities and Exchange Board of India (SEBI). This means that if the government is not able to bring the IPO by May 12, then it will have to file fresh papers with SEBI stating the results of the December quarter. LIC’s IPO can be brought till May 12 without filing new documents.
The government had earlier planned to bring an IPO in March for the sale of about 31.6 crore shares or five per cent stake in LIC. It was expected to raise around Rs 60,000 crore from this IPO. However, this IPO plan has been derailed in view of the huge volatility in the stock market after the Russia-Ukraine crisis. The government had filed the draft red herring prospectus (DRHP) for the IPO with SEBI on February 13, which got SEBI’s nod last week.
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RHP with price band to be filed soon
An official said, “We have time till May 12 to bring the IPO based on the documents filed with SEBI. We are monitoring volatility and will soon file RHP with price band.” The official further said that although the volatility in the market has reduced in the last 15 days, but will wait for the market to stabilize further, so that retail investors can be assured of investing in the stock.
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35% reserved for retail investors
LIC has reserved up to 35 percent of its total IPO size for retail investors. “About Rs 20,000 crore is needed to fully fill the portion reserved for retail investors. As per our market assessment, the current retail demand is not sufficient to fill the entire quota of shares.
(Input-PTI)
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