LIC IPO: Government to sell 3.5% stake, hopes to raise Rs 21,000 crore
The government will sell its 3.5 percent stake in LIC’s upcoming initial public offering (IPO) next month.
The government will sell its 3.5 percent stake in the initial public offering (IPO) of Life Insurance Corporation of India (LIC) coming next month. The sale of government stake is expected to raise around Rs 21,000 crore during the IPO that opens in the first week of May.
Public Sector Insurance Company Life Insurance Corporation of India ,LIC, Initial Public Offering Coming Next Month (IPO) The government owns 3.5 percent stake in (Stake) Will sell An official said on Saturday that the sale of government stake would raise around Rs 21,000 crore during the IPO, which opens in the first week of May. (Rise) are supposed to. For its IPO, LIC can file a final approval application with the market regulator SEBI by Wednesday. This official said with reference to LIC’s IPO that LIC’s IPO is likely to hit the market in the first week of May. He said that during this period the government will sell its 3.5 percent stake in LIC. However, regulatory approval is yet to be taken for this.
LIC had filed a draft issue document with the Securities and Exchange Board of India (SEBI) in February. At that time, LIC had said that the government would sell 5 percent stake in this insurance company i.e. 316 million shares.
IPO was postponed for some time
However, due to the volatility in the stock markets due to the Russo-Ukraine war, the IPO of LIC was postponed for some time. In view of the changed situation, the government has been forced to bring down the size of the IPO to 3.5 per cent.
The official said that the reservation, discount, issue date and value of the IPO will be known by Wednesday for the policyholders and employees of LIC.
Apart from this, let us tell you that according to the latest report, the government can reduce the size of LIC’s IPO by 40 percent. According to the Economic Times report, keeping in mind the Ukraine Crisis, the government can reduce the IPO of LIC by 40 percent to 30 thousand crore rupees. This is being done because the valuation of LIC has come down drastically due to Russia-Ukraine Crisis. Despite the 40 per cent drop in the size of the IPO, it will be the largest IPO in the history of India.
According to the report, the IPO of Life Insurance Corporation may come in the next two weeks. The valuation of LIC has been kept around Rs 6 lakh crore. In such a situation, the government will sell only 5 percent stake and collect a fund of 30 thousand crores.
(with language input)