The initial public offering of India’s largest insurer Life Insurance Corporation (LIC) will launch on May 4, sources were cited by news agencies. While the LIC IPO will launch on May 4, a Wednesday, it will close on Monday, May 9, as per the same sources.
Through the LIC IPO, the government will sell 3.5 percent stake in the state-owned company. It will bring in Rs 21,000 crore. The IPO will value LIC at Rs 6 lakh crore.
READ | Covid 4th wave: Delhi's daily cases climb up to 1,011, positivity rate at 6.42 percent
The stake on offer is 1.5 percent less than the 5 percent mentioned in the previous Draft Red Herring Prospectus (DRHP). The IPO has been downsized due to the market condition. This proposal was tabled in a board meeting on Saturday.
LIC has time until May 12 to launch its IPO and will have to file fresh papers with market regulator Exchange Board of India (SEBI) if it is not opened till the date. While the government had initially eyed the LIC IPO launch in the previous financial year that concluded on March 31, 2022, it decided to delay it due to the market impacts of the ongoing Russia-Ukraine war.
(With inputs from agencies)
