LIC IPO Exclusive News: All investors are waiting for the biggest IPO in the country. LIC is expected to issue its IPO between April 25 and 29.
With this, LIC may file its UTRHP (Updated Red Herring Prospectus) with the Securities and Exchange Board of India (SEBI) tomorrow (Wednesday, April 13).
LIC’s IPO coming soon
Significantly, the government was due to launch the LIC IPO in March. But the decision was postponed due to the instability in the world market in the midst of the Russia-Ukraine war. Currently the market situation seems to be returning to normal.
Therefore, it is expected that the government will soon bring in LIC’s IPO. The government is likely to sell 5 to 6.5 per cent stake in LIC through its IPO. The government plans to raise between Rs 50,000 crore and Rs 60,000 crore through the LIC IPO.
Would be the biggest IPO
It is noteworthy that LIC’s IPO will be the largest in the country. Through LIC’s IPO, the government aims to raise over Rs 60,000 crore in the current financial year and reach its revised investment target of Rs 78,000 crore.
The draft was sent in February
It is noteworthy that LIC filed draft documents with the market regulator in February. As per this draft, it intends to sell 31,62,49,885 shares of LIC’s total of 632 crore shares.
Of this, 50 per cent will be earmarked for Qualified Institutional Investors (QIBs). And for non-company investors this amount would be 15 percent.
Valid for 12 months
Now that the LIC IPO has been approved by SEBI, this IPO is valid for 12 months from the date of approval. The key decision regarding the LIC IPO was taken at the Cabinet meeting. Of this, foreign direct investment (FDI) was allowed up to 20 per cent through automation.
Following this decision, the doors have been opened for foreign investment in LIC’s proposed IPO. However, it is noteworthy that in view of the declining market environment, foreign investors are now beginning to withdraw money from the market.
Stock balance for policyholders and employees
The shares are reserved for LIC policyholders and employees of the company. The LIC issue will be offered at an IPO discount for both parties.
According to the report, 10 per cent of the shares have been allotted to the policyholders as per the draft document submitted to SEBI. That is, even if your LIC policy expires, you are likely to receive shares in the reserve quota. Apart from this a percentage share will be allotted to LIC employees.