LIC IPO News: Latest Update on LIC IPO Date Here | Read Details

The plan to launch LIC IPO before March 31 was stalled due to the ongoing Russia Ukraine war. Reports have stated that the government may not be seeking a very high valuation of the company.

LIC IPO News | New Delhi: LIC IPO date is most likely to be announced by the government by the end of this week. According to reports, the centre will take a call on the IPO soon. The most awaited IPO was originally planned to be opened for subscription in March 2022 but was stalled due to the Russia Ukraine war. For the unversed, the government is aiming to sell 5 per cent of its stake in the form of 31.6 crore shares of the largest health insurer in India.

If the government delays the decision till, after May 12, they will have to file fresh papers with the regulator, the Securities Exchange Bank of India (SEBI). A report by PTI quoted an official as saying, “A decision on timing the IPO would be taken this week.”

Market Value May Not Be As Much As Expected Earlier

The report also stated that the earlier anticipated market value of the firm, may not match the value of the company if the shares are listed now. With an embedded value of Rs 5.4 lakh crore, the m-cap was expected to be somewhere between 10-15 lakh crore.

On this, the official was quoted as saying, “LIC is already a matured company and has seen business growth since its inception. The market valuation would have to be done keeping in mind its growth potential here-on.” High-value listing of the shares does not provide much upside for the investors. This has been evident in the IPOs like Paytm and Nykaa.

If not now, then when?

According to the report, if the government does now launch the LIC IPO by May 12, then they will have to wait till August or September for it. Also, they will be required to file a fresh Draft Red Herring Prospectus (DRHP) with the SEBI.

The report further added that the LIC IPO size may not rise from the current 5 per cent. Through this 5 per cent, the government is expecting to raise a major chunk of money to meet its Rs 65,000 disinvestment target for FY23.