With the Life Insurance Corporation of India (LIC) board’s nod on Sunday, national insurance company filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) with market regulator SEBI the same day.
The news was confirmed by Secretary of Department of Investments and Public Assets Management on Twitter. “The DRHP of LIC IPO has been filed today with the SEBI,” it tweeted.
Earlier in the day, news agency PTI reported sources as saying that preparations were done and all the loose ends had been tied up. The embedded value of LIC has been worked out by Actuarial firm Milliman Advisors LLP India at upwards of Rs 5 lakh crore.
The listing of LIC is important for the government in order to meet the reduced revenue estimates from disinvestment of Rs 78,000 crore for the ongoing financial year, from the initial target of Rs 1.75 lakh crore.
The government has been able to raise around Rs 12,000 crore till now, in proceeds from Air India and other PSU stake sales. LIC is 100 percent owned by the government. Upon its listing, LIC is expected to become the largest company in India in terms of market capitalisation.
The government owns a 100 per cent stake in LIC. Once listed, it is likely to become the country's biggest company by market capitalisation.
The LIC IPO and listing is targeted by March. While a portion of LIC IPO will be reserved for anchor investors, policyholders will have 10 per cent of the LIC IPO issue size reserved for them. SBI Caps and Deloitte have been appointed as pre-IPO transaction advisors for LIC.
(With inputs from PTI)
