LIC IPO may finally be launched in the last week of April, say reports

• Media reports say that LIC may file revised public offer documents by next week and launch the IPO this month.
• LIC IPO was supposed to be completed by March 2022 as stated by the government to meet the divestment target.
• But the unexpected Russia-Ukraine conflict triggered the market and worsened investor sentiments.

State-owned insurance behemoth Life Insurance Corporation of India (LIC) is expected to finally launch the initial public offering (IPO) in April, according to several media reports.

The government is said to file an updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) today, April 13.

LIC IPO was supposed to be completed by March 2022 as stated by the government to meet the divestment target.

But the unexpected Russia-Ukraine conflict triggered one of the huge market crashes, which hit the commodity markets and triggered inflation. This apparently led the government to postpone the IPO.

As per the original DRHP, the government is looking to sell 31 crore equity shares or 5% stake in the company through the IPO. Reportedly, the LIC IPO is expected to fetch around ₹60,000 crore.

LIC’s is the most awaited IPO as it will be the largest ever public issue in the history of Indian capital markets.

Also, the IPO is special for the 29 crore policyholders of the life insurer, who would be getting a preference on the shares. 10% of the LIC IPO issue size is reserved for policyholders who would get some discount on the issue price.

As per a few reports, the government is likely to launch the LIC IPO between April 25 and April 29. Also, once listed, LIC might be among the most valued Indian companies like Reliance Industries, TCS, Infosys and HDFC Bank.

Business Insider has reached out to LIC to confirm the media reports of the IPO launch in April. However, we have not received any response till the time of publishing.


SEE ALSO: Meet Ankiti Bose, the suspended CEO of Zilingo who founded the firm at 23
72 percent women in India reject roles that don’t allow for flexible working