new Delhi: The Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) of Life Insurance Corporation (LIC), news agency Reuters reported on Wednesday.
The approval comes in the wake of reports that the initial share sale was going to be delayed into the next financial year due to volatile markets triggered by the Ukraine-Russia conflict.
The approval of the IPO is valid for a period of 12 months from the date of last observation by SEBI.
The central government is looking to sell 5 per cent stake, about 316 crore shares, in the insurer through an IPO.
According to investment banking sources, SEBI on Tuesday evening issued the so-called final comments.
LIC’s IPO is one of the fastest to get SEBI approval; As per news reports, the insurer had filed its DRHP on February 12. Once the DRHP gets the final approval, the company can start its share sale.
However, the state-run insurance company may not launch its IPO immediately in view of the volatile market conditions. Investment bankers said they would like to wait till the market sentiment improves.
LIC, which has over 250 million policy holders in the country, has created significant buzz among retail investors.
However, LIC’s public listing may be shifted to the next financial year, which begins in April, as bankers and other officials have started preparing for the process.
The central government has set a target to raise over Rs 60,000 crore in the current fiscal to meet its revised disinvestment target of Rs 78,000 crore through LIC IPO. However, given the volatility in the market, the timing of LIC share sale may be reconsidered.