LIC IPO: The IPO of Life Insurance Corporation of India, which is considered synonymous with the insurance industry in the country, was to come in the current financial year ending on March 31, 2022, but there is a big obstacle in the way of the issue of 60,000 crores. Went. The timing of LIC’s IPO is dependent on the sentiment and the stability of the market. It is difficult to predict when the IPO will launch amid geopolitical tensions. However, it is understandable that the government does not want to take any risk like market volatility with this IPO and it has been postponed till the beginning of FY23.
Earlier this week, the updated draft paper (DRHP) was filed with the Central Government Market Regulator (SEBI). The updated draft paper contains LIC’s third quarter results, sources said. Earlier it had made available the results till September, 2021.
Last month, a government official had said that there is time till May 12 to bring LIC’s IPO.
LIC IPO: Price Band Details, Discount Rate
An official told PTI that the updated draft paper will mention the price band, discount to policyholders and retail buyers and the actual number of shares to be sold.
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“We have got the DRHP for approval and as a next step RHP will be filed, giving details like price band and number of shares. We are monitoring the situation and a decision will be taken on the timing of the sale of shares soon.”
LIC IPO : Reserve Part
According to DRHP, LIC employees and policyholders are likely to get reservation in the issue. One-third will be reserved for domestic mutual funds.
50% of the shares will be allotted to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Buyers and 15% to Non-Institutional Buyers. 35% share is fixed for retail investors.
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This IPO is purely an offer for sale (OFS) from the government and no fresh shares will be issued by LIC. The government has 100% stake in LIC. The face value of the share is Rs 10. Accordingly, the Government of India will issue 31.62 crore shares. According to DRHP, the Asset Under Management (AUM) of LIC as of September 2021 is Rs 39.6 lakh crore.
LIC IPO: Whose, How Much Discount
Finance Minister Nirmala Sitharaman said in the Rajya Sabha, eligible policyholders of LIC will get up to 10 percent reservation and can also get a discount on the offer price. Policyholders must link the Permanent Account Number (PAN) details with the LIC policy to be eligible to avail the discount on the IPO offer price.
India’s biggest IPO
With 5 per cent stake sale, LIC’s public issue will be the largest IPO in the history of the Indian stock market. After listing, LIC will be included in the top 3 companies of the Indian stock market. The other two companies are RIL and TCS.
Earlier in 2021, Paytm’s IPO is the biggest issue, through which Rs 18,300 crore was raised from the market. It is followed by Coal India, which raised around Rs 15,500 crore in 2010, and Reliance Power (2008) which has raised Rs 11,700 crore.
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