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The valuation of LIC for the IPO has been done at Rs 6 lakh crore. That is, according to the new size, the size of this IPO will be Rs 21,000 crore.
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In the recent meeting of the Board of Life Insurance Corporation of India (LIC), it has been agreed to reduce the size of LIC IPO.
According to the information, LIC has changed the size of the IPO. Earlier the government was going to sell 5 per cent stake but now the government will bring only 3.5 per cent shares for the IPO.
The valuation of LIC for the IPO has been done at Rs 6 lakh crore. That is, according to the new size, the size of this IPO will be Rs 21,000 crore. Although officials say that if the demand in the market is good, then the government can increase it up to 5 per cent in the future.
It is worth noting that LIC may have reduced the size of the IPO, but for the IPO, LIC has taken permission to sell up to 5 per cent stake in the DRHP deposited with SEBI. Apart from this, it has been givem time till May 12 to list the company. Therefore, the government will have to bring the IPO by the first week of May in any case.
Actually, under LIC IPO, the government has set its target. LIC had filed a draft issue document with the Securities and Exchange Board of India (SEBI) in February. At that time LIC had kept its size bigger. LIC had said that the government would sell 5 per cent stake in it i.e. 316 crore shares.
As per the experts, the government is raising this low to attract investors in view of the market situation. This decision of the government will increase the chances of listing gains for the investors. There has also been a decrease in FPI in the Indian market.
It is worth noting that the government had made all the preparations to bring the LIC IPO in March. But due to the upheaval in the stock markets due to the Russia-Ukraine War, LIC's IPO was postponed for some time. After this, keeping in view the changed situation in the global market, the government has also reduced the issue size to 3.5 per cent. Officials say that the reservation, discount, issue date and issue price in the issue for LIC policyholders and employees will be known by Wednesday.
(Inputs From Agencies)