LIC IPO Date: The much-awaited initial public offering (IPO) of Life Insurance Corporation of India (LIC) received in-principle approval from the board. However, the board has reportedly asked for certain clarifications on the draft paper, according to reports. The board is expected to meet again over the weekend to take the final decision on LIC IPO draft prospectus. Once the board clear the draft document, the centre will file it with the market regulator.
LIC IPO draft red herring prospectus (DRHP) can be filed with
Securities and Exchange Board (Sebi) over the weekend or on February 15, according to sources.
India is leaving no stone unturned to make the biggest-ever listing a sucess. From tweaking capital market rules to checking all the necessary details to avoid further delay, the preparations for ‘mother of all IPOs’ are in full swing.
How Big will be LIC IPO?
The embedded value of the Life Insurance Corporation of India has been set at over Rs 5 lakh crore. The valuation of LIC IPO is likely to be three to five times the embedded value. At the current price, the LIC could command a valuation of over Rs 15 lakh crore post listing according to experts.
LIC IPO: How much Stake Govt will Sale?
At present, the government owns 100 per cent stake in LIC. The government is planning to offload around 5 per cent of shares, according to people familiar with the matter. LIC IPO will be entirely offer for sale. The government plans to offer 316 million shares of the 6.32 billion shares and no fresh stock will be issued.
LIC IPO: What Investors Should Know
LIC policyholders likely to get a chance to have a share at India’s biggest IPO at a discounted rates. The government is planning to offer a discount of 5 per cent to its policyholders in the LIC IPO. The retail investors and employees are also likely to get some concession on the price band.
“The expected price band of the LIC IPO could be anywhere between Rs 400-600,” said Angel One.
“We are anticipating the momentum in the opening of new retail broking accounts to get a boost on observing the interest that the LIC IPO is generating. Around 25 crore LIC policyholders and eight crore demat accounts are currently present in India. With the government’s decision to reserve 10 per cent of the total issue for policyholders, we are expecting some discount to the issue price for policyholders,” said Arijit Malakar, head of retail equity Research, Ashika Group.
A record number of 34 lakh demat accounts were opened in January ahead of the mega LIC IPO. “Brokers are giving discount on the IPO price, which has pushed several policyholders to rush to brokers to open their demat accounts. The LIC ipo is going to open a fresh entry of new retail investors in the stock market. Nearly 10 million applications are expected from retail investors for the LIC IPO,” said vice president and head of research, ShareIndia.