LIC Update : Life Insurance Corporation of India's IPO will open on May 9

The Initial Public Offer (LIC IPO) of the country's largest insurance company Life Insurance Corporation will open on May 4 and close on May 9. Sources gave this information on Monday. The government will sell its 3.5 per cent stake in the public sector company through IPO. With this, the government will get Rs 21,000 crore based on the IPO, the valuation of LIC works out to Rs 6 lakh crore.

The government had planned to sell its five per cent stake or 316 crore shares in LIC in February and also submitted draft papers with SEBI. The government wanted to bring LIC's IPO in March this year. However, the IPO was postponed in view of the Russo-Ukraine war. Earlier the size of LIC's IPO was being kept at Rs 60,000 crore, but it has been reduced considering the global market situation.

As per SEBI rules, companies with valuation of Rs 1 lakh crore or above will have to sell at least 5 per cent stake in the IPO. The embedded value of LIC, which is a way of computing the value of consolidated shareholders in an insurance company was pegged at around Rs 5.4 lakh crore by international firm Milliman Advisors as of September 30, 2021.