LIC IPO: Date, price details, size for policyholders, investors

The government is unlikely to decrease its stake further in the Life Insurance Corporation (LIC) of India, according to an ANI report. This comes as the wait for the initial public offering (IPO) of LIC gets longer.

The government was aiming to raise around Rs 60,000 crore by selling its 5 per cent stake.

Top LIC officials said that the government does not have any plan to dilute its stake in the country’s largest insurer further, as per the ANI report. LIC officials said that the insurance behemoth won’t require funding support from the government for the next two years, the ANI report says.

LIC IPO DATE

LIC, which was to be launched in March, got delayed due to the volatile situation in the stock market after Russia invaded Ukraine.

Earlier, Reuters reported that LIC IPO may launch by mid-April. Now there are reports that the much-awaited IPO is likely to be held in early May if the stock market remains stable.

According to norms, if the IPO does not place by May 12, then the government will require to update Draft Red Herring Prospectus (DRHP).

LIC IPO SIZE

According to the draft red herring prospectus (DRHP), LIC’s embedded value, which is a measure of the consolidated shareholders value in an insurance company, has been pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.

Although the DRHP does not disclose the market valuation of LIC, as per industry standards, it would be about three times the embedded value or around Rs 16 lakh crore, according to a PTI report.

The LIC public issue would be the biggest IPO in the history of the Indian stock market. Once listed, LIC’s market valuation would be comparable to top companies like RIL and TCS, the PTI report says.

So far, the amount mobilised from IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.

policyholders must link PAN details with their LIC policies to become eligible to participate in the upcoming LIC’s IPO and get a discount over the floor price.

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