“Can’t Give Any Interim Relief”: Supreme Court Refuses To Stay LIC IPO

“We won’t give any interim aid on this matter. There are greater than 73 lakh candidates already subscribed to the IPO. This can be a matter of funding and we will not give any aid in it,” the highest court docket acknowledged.

Nevertheless, the court docket has issued discover to the federal government on petitions difficult the constitutional validity of sure sections’ provisions of the Finance Act, 2021 and LIC Act 1956, in search of a reply in 4 weeks.

The choice was taken by a bench of Justices DY Chandrachud, Surya Kant and PS Narasimha.

The court docket was listening to a batch of petitions filed towards the LIC’s mega IPO. The petitioners challenged the legality of the federal government’s transfer to move the choice to launch the LIC’s IPO via a Cash Invoice.

The nation’s largest-ever IPO was oversubscribed 2.95 instances as six days of bidding got here to an finish on Could 9.

The worth vary for the problem was between Rs 902 and Rs 949 per share. LIC is prone to be listed on Could 17.

The Centre expects to boost as much as Rs 21,000 crore – a 3rd of its unique goal – from promoting a 3.5 per cent stake within the nation’s high insurer.

The 66-year-old firm dominates India’s insurance coverage sector, with greater than 28 crore insurance policies.

LIC was the fifth-biggest world insurer by way of insurance coverage premium assortment in 2020, as per the most recent 12 months for which statistics can be found.

Few gray market information confirmed that the LIC shares would checklist Rs 15 beneath their concern value. Nevertheless, policyholders and staff would nonetheless make a revenue as they’ve reductions within the public provide.