LIC can bring its IPO by the end of this month (between April 25 and 29). On Wednesday, April 3, LIC may file its UDRHP (Updated Draft Red Herring Prospectus) with the Securities Exchange Board of India (SEBI).
Everyone is waiting for the country’s biggest IPO. The business has given exclusive news about LIC IPO. LIC may announce its IPO between April 25 and 29. LIC may file its UDRHP with the Securities Exchange Board of India (SEBI) tomorrow i.e. Wednesday, April 13.
LIC’s IPO will be launched soon
Significantly, the government was about to bring LIC’s IPO in March. Now the market conditions seem to be returning to normal. In such a situation, it is now expected that the government can bring LIC’s IPO soon. The government will sell a 5 to 6.5 % stake through LIP’s initial offering. make a case for that the govt. plans to lift Rs fifty,000 to 60,000 large integer through LIC initial offering.
Read More: The Great Indian IPO’ to come by March, DRHP this week: Deepam secretary on LIC IPO
The biggest IPO will be
Significantly, LIC’s IPO will be the biggest IPO in the country. Through this IPO of LIC, the government aims to raise over Rs 60,000 crore in the current financial year to meet its revised disinvestment target of Rs 78,000 crore.
The draft was sent in February
LIC had filed draft papers with the market regulator in February. According to this draft, out of the total 632 crore shares of LIC, 31,62,49,885 equity shares are proposed to be sold. Of this, 50 percent will be reserved for Qualified Institutional Buyers (QIBs), while it will be 15 percent for non-institutional buyers.
valid for 12 months
Now after SEBI approves LIC IPO, this IPO is valid for a period of 12 months from the date of approval. In the cabinet meeting, a big decision was taken regarding the IPO of LIC. In this, foreign direct investment (FDIE) was allowed up to 20 percent under the automatic route. But, seeable of the declining atmosphere of the market, foreign investors have started retreating their cash from the market.
Policyholder-Employees’ Share Reserve
According to the report, as per the draft document submitted to SEBI, 10 percent of the issue has been reserved for policyholders. That is, even if your LIC policy has lapsed, you can still bid under the reserved quota.
country’s largest insurance company
It is worth noting that the market of LIC is very strong. Its market share is 64.1%. According to the report, it is the largest life insurance company in the country. It is the third-largest insurance underwriter in the world in terms of life assurance premiums.
