LIC IPO: Key update on price band, discount for policyholders
India Today
The government is presently in the wait-and-watch mode because of the market volatility due to the Russia-Ukraine war and will decide on the timing of the LIC's IPO.
The government is planning to file final papers for the LIC's Initial Public Offering (IPO) with market regulator the Securities and Exchange Board of India (Sebi), according to a PTI report. The final papers will offer details about discounts for policyholders and retail buyers, price band and total number of shares, the report says.
LIC had, on February 13, filed the draft red herring prospectus (DRHP) for LIC IPO. Earlier this week, Sebi gave approval to the draft papers, paving the way for the share sale.
"We have got the approval of the DRHP and the next step would be to file the RHP, which will give details of the price band and the actual number of shares," an official told PTI.
The government is presently in the wait-and-watch mode because of the market volatility due to the Russia-Ukraine war and will decide on the timing of the IPO of Life Insurance Corporation (LIC).
"We are watching the situation, and soon we will take a call on the timing of the share sale," the official told PTI.
The government was expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent shares in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.
In case the initial share sale does not happen by March, the government will miss its revised disinvestment target for the current fiscal by a wide margin.
