LIC IPO: The draft paper for filing for Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC) may get approval from market regulator SEBI on Monday. This information has been given from a government official in a report by Business Standard. The official also said that the government may submit the Red Herring Prospect (RHP) with Sebi only a few days after the draft paper is approved.
The official said that the government will try to answer all the queries of SEBI at the earliest and after that it will proceed to deposit the RHP after assessing the market volatility and other aspects.
In LIC’s RHP, the government can announce the date of launch of IPO. Apart from this, the size of its LIC IPO, the price band of the shares, and other details will also be given. LIC had submitted the draft papers for the IPO on February 13.
The government will sell its 5 percent stake in LIC or about 31.6 crore shares. When the draft paper for LIC’s IPO was submitted, it was said by the government at various levels that it wants to launch the IPO before March 31 in any case. However, in the meantime, the situation in the market has changed due to the war between Russia and Ukraine.
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The war between Russia and Ukraine has caused stock markets around the world to fall and investors away from the market. In such a situation, the merchant bankers appointed by the government have advised to postpone this IPO for one to two months.
LIC’s IPO will be the biggest IPO ever in the history of India. The government is preparing to raise around Rs 65,000 to 70,000 crore from this IPO. In such a situation, for this IPO to be successful, full support of all types of investors will be required.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said on Friday that the government will take any decision regarding LIC’s IPO keeping in mind the interests of investors.
He said that the government wants to bring LIC’s IPO in the current financial year itself, but at this time some unforeseen events are happening. We are keeping a close watch on the market.
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