LIC IPO, In a major development in the wake of listing of the life insurance giant, the government has amended the rules of the Foreign Exchange Management Act (FEMA). The move has paved the way for foreign direct investment (FDI) of up to 20 percent in India. LIC, The FEMA notification is required to implement the already approved and amended Foreign Direct Investment (FDI) policy to facilitate foreign investment in Mega Initial Public Offers (IPOs).
LIC’s IPO will be the biggest ever in the history of the Indian stock market. 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. Once listed, the market valuation of LIC will be at par with top companies like RIL and TCS. So far, the amount raised from Paytm’s IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore. Here are the key developments that investors should be aware of.
LIC IPO: Updated DRHP
According to sources, the country’s largest insurance company may file an updated draft Red Herring Prospectus (UDRHP) for the IPO after consultations between the Department of Investment and Public Asset Management (DIPAM) and investment bankers and a key meeting of the LIC board. Is. ,
LIC IPO: Decreased Valuation
The LIC board may decide to reduce the valuation of the company 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 government is now contemplating a valuation of around Rs 11 lakh crore from the IPO, which was Rs 16 lakh crore earlier.
LIC IPO: Listing 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 to launch LIC IPO between April 25-29, sources have said.
LIC IPO: Sovereign, Center wooing pension funds
The government has given access to other sovereign wealth funds and pension funds with Abu Dhabi Investment Authority, Singapore-based GIC, three Canadian pension funds and Qatar Investment Authority being anchor investors in Life Insurance Corporation (LIC) of India’s initial public offering (IPO). has created. ,
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