As the government is gearing up for this LIC IPO With the listing next month, several developments begin to emerge in the process, between a grim global market outlook and inflation projections. The government is considering all points to woo investors and promise value. The country’s largest insurance company may file an updated draft red herring prospectus (UDRHP) for the LIC IPO after consultations between the Department of Investment and Public Asset Management (DIPAM) and investment bankers. LIC According to media reports the board
As per the current DRHP, the government will dilute 5 per cent stake in the insurance giant through 31.6 crore shares to raise Rs 63,000 crore. This will help meet the Centre’s disinvestment target of Rs 78,000 crore for the current fiscal. Here are the key developments that investors should be aware of.
Center plans to reduce valuation
LIC’s board is meeting this week to decide whether to lower the company’s valuation and offer more shares in its initial public offering, which will make the float more attractive to many of its policyholders who are first-time investors. . The insurer plans to reduce its valuation to 30 percent and offer 7 percent of its shares to the public, up from 5 percent earlier. The government is now contemplating a valuation of around Rs 11 lakh crore from the IPO, which was Rs 16 lakh crore earlier.
Revised IPO Papers in the Works
Sources told The Economic Times that the LIC board will meet later this week to “finalize the FY22 results and later file a revised public offer document by the middle of next week”. A government source also said that the listing “will be completed by May 12”.
The company will file the revised document with the Insurance Regulatory and Development Authority of India (IRDAI) once its results are approved by the board. The issue is also likely to open towards the end of April after the completion of the roadshow.
lic ipo date
The government had planned to launch LIC IPO by the financial year 2022. However, the war between Russia and Ukraine and the volatile situation in the stock market derailed the timeline. On March 1, Finance Minister Nirmala Sitharaman said, “Ideally, I would go ahead with this as we had planned to base it purely on Indian views for some time. But if global views warrant it.” That I need to see it, I won’t mind watching it again.” “When a private sector promoter takes this call, all they have to do is explain it to the company’s board. But I have to do it. Explain to the whole world,” she continued. Now, the government is likely Launch LIC IPO Between April 25-29, sources have said.
lic ipo reserve part
The government has reserved around 50 per cent of LIC’s IPO for Qualified Institutional Buyers (QIBs). For non-institutional investors (NIIs), this share will be around 15 per cent. The retail quota for LIC’s IPO has been fixed at 35 per cent of the offer. One-third of the anchor investor will be reserved for domestic mutual funds.
A significant portion will also be reserved for policyholders and should not exceed 10 per cent of the public issue. For employees also, 5 percent of LIC’s IPO will be reserved. Both employees and policyholders will get a chance to book LIC IPO at a discounted rate.
LIC IPO Anchor Investor Final
The Center has shortlisted 50-60 anchor investors, which include BlackRock, Sands Capital, Fidelity Investments, Standard Life and JP Morgan, and will be finalizing its anchor book soon.
Moreover, according to sources, the IPO has garnered significant interest from local and foreign investors, with at least 12 top fund managers committing to bring in around Rs 18,000 crore as anchor investors.
LIC Public Issue will be the biggest IPO in the history of Indian stock market. Once listed, LIC’s market valuation will be at par with top companies like Reliance Industries Limited and Tata Consultancy Services.
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