LIC IPO: From launch date to valuation, all you need to know
India Today
The embedded value will help establish the market valuation of LIC and determine how much money the government raises in the flotation.
As the government gears up to file a Draft Red Herring Prospectus (DRHP) for the initial public offering (IPO) of LIC, all eyes are on the valuation of the mega share sale of the state-run insurer.
LIC IPO VALUATION
LIC's embedded value has been finalised at more than 5 trillion rupees (USD 66.82 billion), a government official who is overseeing what is expected to be the country's largest IPO said.
"I would say the embedded value could be more than 5 trillion rupees and the enterprise value will be multiples of that," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey told Reuters.
The embedded value will help establish the market valuation of LIC and determine how much money the government raises in the flotation. That will be crucial for the government to help meet its divestment targets and keep its fiscal deficit in check.
LIC's market valuation has been projected at around four times the embedded value.
LIC IPO SIZE
