LIC to file a DRHP – draft red herring prospectus with market regulator SEBI this week (still not confirmed) as IRDAI clears IPO proposal. As per the market speculations the LIC IPO might hit the market soon maybe in March 2022.
Finance Minister Nirmala Sitharaman had said in her 2022-23 Budget speech “The public issue of the LIC is expected shortly.”
LIC IPO DRHP: We sense that the Life Insurance Corporation (LIC) IPO is around the corner as the company is going to file Draft Red Herring Prospectus (DRHP) soon. The LIC IPO will help the government in the divestment of Rs.78000 crores as the embedded value was finalized around 5 Lakh crores. The government raised Rs 12,000 crore from the privatization of Air India and stake sale in other PSUs in this financial year according to the sources.
The government has appointed merchant bankers that include names like Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities, to manage the IPO.
Will LIC policyholders get the discount in IPO?
As per the reports, the Government is planning to add a policyholder quota in the IPO and they could get the discount as they hold the largest portion in the retail investor segment. The government is in the process to add a 20% foreign investment limit to get success in LIC IPO.
Who has the top holding in the LIC?
As per the market sources, Reliance Industries and Infosys are holding the stake in LIC.
What is the LIC IPO valuation and what will be the offer?
As per the market, the life insurance company LIC’s valuation will be around 15 lakh crores. If the company sale a stake of around 7 to 10%, the offering will be around 1 lakh crores. It will be great to see the LIC IPO subscription numbers.
Let’s hope we will witness the biggest IPO of the Indian Stock Market in 2022.
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