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While the LIC initial public offering has become the next big thing in the stock market considering the insurer will be the mother of all IPOs. However, it looks like the government is not keen on launching follow-up public offer (FPO) for LIC at least in the next one year.
A Reuters report cited that the Indian government official says, "we aren't going to bring in any other FPO for LIC in next one year."
The officials say that there is quite a bit of domestic demand for the LIC.
Also, the officials have stated that both LIC and Government will exit management control from IDBI Bank.
In a press conference on Wednesday, DIPAM secretary Tuhin Kanta Pandey said, "We want LIC as the long-term value creator in the equity market."
Furthermore, in LIC IPO, the share surplus for participating will move to 10% from 5%. Notably, LIC has hinted toward further divestment soon. However, the details of further dilution by the government in LIC are yet to be disclosed.
Talking about the exit from IDBI Bank, Pandey said that the top management of LIC will exit from IDBI soon. He said the motion is in the process.
LIC is set to launch its nearly ₹21,000 crore IPO from 4 May to 9 May. The IPO will open on 2 May for anchor investors. LIC has fixed a price band of ₹902 apiece at the lower end and ₹949 apiece at the upper end.
"Even after the reduce size of ₹21,000 crore, the LIC IPO will initially be the biggest ever IPO in the country," Pandey said.