LIC’s IPO, which is billed as the country’s biggest ever initial stock sale, is expected to be delayed due to market volatility due to the ongoing Russian-Ukrainian war.
The launch date of LIC’s IPO is likely to be delayed.
Policyholders and investors are eagerly awaiting clarification on the launch date of Life Insurance Corporation’s (LIC) mega initial public offering (IPO). The long-awaited stock sale was previously expected to hit the markets by March 31. However, given the market volatility due to the ongoing Russian-Ukrainian war, it forced the government to rethink the launch date. The government has not yet announced a decision in this regard.
LIC IPO LAUNCH DATE
LIC’s IPO, which is billed as the country’s biggest initial stock sale, is expected to be delayed until mid-April, according to a Reuters report. “Most likely, LIC would now be listed in mid-April,” Reuters reported quoting a senior government official.
According to the draft documents or the Draft Red Herring Prospectus (DRHP) of the LIC IPO, the government has time until May 12 this year to initiate the initial sale of the shares.
If the government postpones the launch date of LIC’s IPO beyond May 12, new draft documents will need to be submitted.
The draft documents were filed with the Securities and Exchange Board of India (Sebi) on February 13. HDRD has been authorized by Sebi.
LIC IPO PRICE
Employees and policyholders of the national insurer would benefit from a discount compared to the floor price.
LIC SIZE DETAILS, VALUE
- The government would sell a 5% stake or more of 31.6 crore shares for an estimated Rs 63,000 crore.
- According to the Red Herring Prospectus Project (DRHP), the intrinsic value of LIC, which is a measure of consolidated shareholder value of an insurance company, was pegged at around Rs 5.4 lakh crore as of September 30. 2021, by international actuarial firm Milliman. Advisors.
- Although the DRHP does not disclose the market value of LIC, by industry standards it would be around three times the intrinsic value or around Rs 16 lakh crore, according to a PTI report.
- The public offering of LIC would be the biggest IPO in the history of the Indian stock market. Once listed, LIC’s market valuation would be comparable to that of leading companies such as RIL and TCS, the PTI report said.
- So far, the amount raised from Paytm IPO in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at almost Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
According to the DRHP, policyholders must link PAN details to their LIC policies to become eligible to participate in the upcoming LIC IPO and obtain a floor price discount.
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