BREAKING: LIC IPO Gets SEBI Nod Within 22 Days Of Filing DRHP

LIC IPO News: LIC had filed for its DRHP with the SEBI on February 13, 2022. As per the draft papers, the company will sell over 31 crore shares via an offer-for-sale (OFS).

New Delhi: Within 22 days of filing LIC Draft Red Herring Prospectus (DRHP), the company has been given the approval to go ahead with the LIC IPO by the Securities Exchange Board of India (SEBI). According to a latest report by Economic Times, SEBI has also issued an observation letter for the same.

LIC had filed for its DRHP with the SEBI on February 13, 2022. As per the draft papers, the company will sell over 31 crore shares via an offer-for-sale (OFS). The government will sell 5 per cent of its stake in the company to the public. The retail investors can invest apply for 35 per cent of the total shares. On the other hand, Qualified institutional buyers (QIBs) can apply for a 50 per cent portion out of the remaining.

According to a DRHP, the issue will also have special reservations for employees of the company and policyholders. However, the government expressed its reservations last week regarding the date of the IPO amid Russia Ukraine tensions. Earlier, the government had planned to list the company on the stock exchange by March 31, 2022. Now, reports suggest that it might be delayed by at least a month.

LIC IPO could fetch the government around Rs 60,000. The proceedings of the issue, according to DRHP, will go to the government. It was supposed to help the government in meeting its disinvestment target of Rs 78,000 for the year ending March 31, 2022. However, with the Russian invasion of Ukraine and the government’s plans to postpone the LIC IPO, the target may not be met in time.