LIC IPO: 5 things to know before applying for shares
India Today
The government has time till May 12 to launch the LIC's IPO without filing fresh papers with the Sebi.
The wait for the launch of Life Insurance Corporation of India's (LIC) initial public offer (IPO) is getting longer as the government is yet to announce an official date. The IPO was supposed to hit the market before March 31, 2022 but the launch was delayed due to market volatility following Russia's invasion of Ukraine.
The government is expecting to garner Rs 60,000 crore through the IPO of LIC. Investors and LIC policyholders must know a few important details before applying for shares when the IPO hits the market.
In the run-up to the mega IPO, on February 13, the government had filed the draft red herring prospectus (DRHP) with the regulator giving details of financial results till September. The DRHP got Securities and Exchange Board of India's (Sebi) approval.
Again in March, the government filed updated draft papers in which the December quarter financials of LIC were incorporated.
As per the updated financials, the Life Insurance Corporation reported a net profit of Rs 235 crore in the October-December quarter. The net profit in April-December, 2021, increased to Rs 1,671.57 crore from Rs 7.08 crore a year ago.
The government has time till May 12 to launch the LIC's IPO without filing fresh papers with the Sebi.
The government is expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent stake in LIC to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.
