The much-awaited initial public offering of the Life Insurance Corporation of India is likely to open on May 4, CNBC TV18 reported on April 25, citing sources privy to the development.
The issue is expected to close on May 9, the report said, adding that the anchor book for the LIC IPO is likely open on May 2.
The government, which wholly owns the insurance behemoth, plans to sell a 3.5 percent stake or around 22 crore shares to raise an estimated amount of Rs 21,000 crore, reports had said last week.
An updated draft red herring prospectus, that lists a 3.5 percent stake sale instead of 5 percent as mentioned in the previous DRHP, has been reportedly submitted before the Securities and Exchange Board of India.
The LIC board, the news channel learnt from sources, will meet this week to finalise the price band for the IPO. As per the LIC Act, the government can reserve up to 10 percent for the policyholders.
By seeking Rs 21,000 crore for the revised holding on the block, as stated in the reports, the government is targeting a valuation of Rs 6 trillion for the insurer.
The IPO, notably, holds the key to the Centre’s plan to meet its disinvestment targets. The government has pegged divestment receipts at Rs 65,000 crore for 2022-23, up from Rs 13,531 crore last fiscal.
The previous draft papers related to the IPO was filed with the Sebi in February, when the government had stated that it plans to sell 31.6 crore shares in a 5 percent stake sale in the state-run insurer.
The IPO plans, however, were deferred as the market faced volatility following the Russian invasion of Ukraine.
(This is a developing story. Please check back for more updates)
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