Updated LIC IPO DRHP Reportedly Filed By Government With SEBI

LIC IPO: According to media reports, the government wants to sell 3.5 per cent of its stake in the LIC. This limit was 5 per cent earlier. The reduction may be due to high market volatility and the outflow of foreign investment.

LIC IPO | New Delhi: The government has reportedly filed a fresh, updated Draft Red Herring Prospectus (DRHP) for the upcoming LIC IPO with the SEBI. According to a report by India Today, the SEBI is expected to approve the DRHP by next week. Also, the government will then most likely file the Red Herring Prospectus (RHP) by the end of the week.

The government, according to media reports, are expecting to get Rs 60,000 crore from the LIC IPO. It was supposed to hit the bourses by March 31, 2022, but it was delayed due to the ongoing Russia Ukraine war. However, according to the latest report, the government may also cut the size of the stake it wants to sell to 3.5 per cent from earlier 5 per cent. It would mean, the LIC IPO size will be reduced to Rs 21,000 crore.

LIC Valuation At 6 Lakh Crore

According to this stake, the valuation of LIC stands at Rs 6 lakh crore. Earlier, international actuarial firm Milliman Advisors, LIC should be valued at around Rs 5.4 lakh crore.

It must be noted that even by selling the 3.5 per cent stake, it will still be the biggest IPO of India to date. Before this, Paytm was the biggest IPO ever. LIC IPO will serve a major role in helping the government meets its disinvestment target of Rs 65,000 for the year 2022-23.