LIC’s IPO Likely To Open On May 4, But Exact Timelines Post April 27: Sources

The Life Insurance coverage Company’s (LIC) long-awaited public concern provide is prone to open on Could 4 and shut on Could 9, in line with sources, who mentioned the precise timelines can be confirmed post-April 27.

The precise date ranges and different particulars of the LIC’s preliminary public providing (IPO) will probably be confirmed subsequent week, the sources added.

That comes on the heels of the LIC board approving a lower in its IPO concern measurement to three.5 per cent from 5 per cent, in line with sources on Saturday.

The federal government is now anticipated to promote 3.5 per cent of its stake in LIC for Rs 21,000 crore, topic to the approval of the capital markets regulator Securities and Alternate Board of India, SEBI.

That will worth the insurance coverage behemoth at 6 lakh crore.

A major lower in valuation from a earlier estimate of round Rs 17 trillion for the 66-year outdated firm.

The draft purple herring prospectus filed with the SEBI and accredited confirmed the federal government had proposed a sale of its 5 per cent fairness.

Nonetheless, regardless of that setback and reducing of the corporate’s valuation, it might be India’s most vital so far.

Certainly, the general public concern measurement of the insurance coverage behemoth on the lowered Rs 21,000 crore will probably be bigger than the quantity mobilised from the IPO of Paytm in 2021 was the most important ever at Rs 18,300 crore, adopted by Coal India (2010) at practically Rs 15,500 crore and Reliance Energy (2008) at Rs 11,700 crore. 

The stake sale was initially deliberate to be launched in March 2022, however the Russia-Ukraine disaster derailed these plans as inventory markets had been extremely unstable. 

Beforehand, the federal government was anticipating to garner over Rs 60,000 crore by promoting about 31.6 crore or 5 per cent stake within the life insurance coverage agency to satisfy the curtailed disinvestment goal of Rs 78,000 crore in 2021-22. 

However the drastic reducing of ambitions for the IPO can be a setback for the federal government and problem its fiscal balances because the disinvestment was positioned and aimed toward replenishing the state’s coffers.