India is prepared for massive disinvestment by the Government of India. In Fy2022, the government has set a disinvestment target of Rs 1.75 lakh crore, with strategic sale of IDBI Bank, BPCL, Shipping Corporation, Container Corporation, Neelachal Ispat, Pawan Hans among others. In this process, the Life insurance corporation is the most waited IPO for the stock market, which is expected in the last quarter of FY2021-2022.
After dwelling for months over its valuation process of the mammoth insurer of the country, LIC has finally got the approval from the market watchdog Securities exchange board of India to launch its IPO. The approval came after 22 days of filling of DRHP with SEBI.
The LIC IPO is expected to garner Rs64,500 crores through an offer for the sale of 31.6 crores shares. Out of total outstanding shares of 632.49 crores equity shares, this is only a 5% stake of the Indian government in LIC.
Details of LIC IPO is given as under:
- Issue Type-Offer for sale of shares
- Issue Size- 31,62,49,885 equity shares
- Reserved shares
- Qualified institutional investors-50%
- Non-Institutional Investor-15%
- Retail Investors-35%
The question lies, when will the IPO be launched in the market?
Amid ongoing geopolitical tension between Russia and Ukraine might delay the IPO launch as there is high volatility in the market. However, the IPO approval remains valid for 12 months from the day, the firm gets SEBI’s nod to go ahead with the IPO.
Thus investors will have to hold on to the grip till further details on the launch of the biggest ever IPO see the sunlight.