Govt to sell 5% in LIC via IPO; embedded value nearly Rs 5.4 lakh cr
India Today
“The DRHP of LIC IPO has been filed with the SEBI. For filing valuation about 31.6 crore shares are on offer representing 5 per cent equity,” DIPAM Secretary Tuhin Kanta Pandey tweeted.
The government on Sunday filed draft papers with capital market regulator Sebi for selling 5 per cent stake in insurance behemoth LIC through an initial public offering which is likely to hit D-street in March.
“The DRHP of LIC IPO has been filed today with the SEBI. For filing valuation about 31.6 crore shares are on offer representing 5 per cent equity,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
As per the draft red herring prospectus, LIC’s embedded value has been pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
Under the embedded value method, insurance companies’ present value of future profit is also included in its present net asset value (NAV).
The IPO is 100 per cent offer for sale (OFS) by the Government of India and no fresh issue of shares by Life Insurance Corporation (LIC).
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“LIC has 66 per cent market share in new business premiums with 283 million policies and 1.35 million agents as of March 31, 2021,” Pandey added.
