LIC to launch IPO in next 20 days , SEBI approval for LIC's IPO

Capital markets regulator SEBI has approved the IPO of the country's largest insurance company Life Insurance Corporation of India Limited (LIC). Through this initial public offer (IPO), LIC wants to sell its five percent stake. The company is expected to get around Rs 63,000 crore from this sale.

Sources have told that to achieve the disinvestment target of the current financial year, the government wants to introduce this IPO within the next 20 days or before the end of the current financial year (March 31, 2022). Securities and Exchange Board of India (SEBI) ) approved the draft Red Herring Prospectus (DRHP) for LIC's IPO within a month. This is the shortest time taken by SEBI in terms of giving approval for an IPO.

LIC had filed DRHP with SEBI for IPO on February 13 this year. According to DRHP, the company wants to sell 315 million shares or five percent stake under this IPO. In this, a special discount will also be given to the policyholders and employees on the floor price (the price at which the company will allot the shares). As per norms, a maximum of five per cent of the shares can be reserved for employees and a maximum of 10 per cent for policyholders. However, the DRHP does not provide any information about the company's market valuation.