LIC had in February filed its draft red herring prospectus (DRHP) with SEBI.
Life Insurance Corporation (LIC) has received market regulator SEBI’s approval for its much-awaited IPO (Initial Public Offering), according to sources, who also added that the Red Herring Prospectus (RHP) is being prepared and final details will be added as per the decision taken further by the finance ministry.
LIC officials to meet finance ministry officials
The sources further said that the LIC officials will meet the Department of Investment and Public Asset Management (DIPAM) officials this weekend to decide the future course of action.
They stated that the LIC’s December quarter results have been audited and will be added to the RHP when it is released.
The sources added that the planned roadshows, with big-ticket investors, seeking their participation in the LIC IPO, have not been impacted by the current geopolitical situation – The Russia-Ukraine war.
Also Read: Ukraine crisis: LIC IPO may be postponed to next fiscal, say experts
LIC DRHP
LIC had in February filed its draft red herring prospectus (DRHP) with SEBI. The government was expecting to garner Rs 63,000 crore by offloading a five per cent stake in the life insurance company to meet its curtailed disinvestment target of Rs 78,000 crore in the current fiscal.
As per the DRHP, up to 31,62,49,885 (31.62 crore) equity shares will be on offer through the offer for sale (OFS), representing 5 per cent of the equity stake. There will be no fresh issue of shares.
Also Read: LIC IPO: Here’s what you need to know about the public insurer’s history
LIC’s embedded value stood at Rs 5,39,686 crore as of September 30, 2021. Eligible policyholders may get a discount to the offer price and it will be announced at least two working days prior to the bid/offer opening date, it said. Up to 60 per cent of QIB portion will be allocated to anchor investors, while one-third of the anchor investor portion will be reserved for domestic mutual funds.
LIC’s current promoter is the President of India, acting through the Ministry of Finance, Government of India. The promoter currently holds 100 per cent of the pre-offer paid-up equity share capital of the Corporation.
The government has appointed 10 merchant bankers, including Kotak Mahindra Capital, Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd, to manage the mega IPO of the country’s largest insurer.
https://www.businesstoday.in/markets/ipo-corner/story/lic-ipo-sebi-gives-nod-to-launch-indias-biggest-ever-ipo-325243-2022-03-09
