LIC IPO gets Sebi approval; what's next for investors, policyholders
India Today
Through the IPO of Life Insurance Corporation (LIC), the government aims to garner over Rs 60,000 crore in the current fiscal to meet its revised disinvestment target of Rs 78,000 crore.
LIC's initial public offering (IPO) has received a nod from market regulator the Securities and Exchange Board of India (Sebi). The approval was granted within 22 days of filing draft red herring prospectus (DRHP) by the country's largest insurer, Sebi, according to a Business Today report.
IPO approvals are valid for a period of 12 months from the date of final observation by the Securities and Exchange Commission of India, as per a Reuters report.
The government has plans to sell 5 per cent of LIC's stake this month before the financial year ends on March 31. The offering is seen as critical to the government's plan to raise funds for budgeted spending.
Through the IPO of Life Insurance Corporation (LIC), the government aims to garner over Rs 60,000 crore in the current fiscal to meet its revised disinvestment target of Rs 78,000 crore.
Sebi's approval comes in the wake of reports that the initial share sale was set to be delayed to next financial year due to market volatility stoked by the Ukraine crisis.
Reuters reported earlier, citing sources, that bankers advising LIC had pushed the government to defer the launch of the stock offering.
Global markets including India have become extremely volatile after Russian President Vladimir Putin authorised what he called a "special military operation" on Ukraine.
