Tuesday, November 29, 2022
HomeBusinessLIC IPO: Government may decide this week on the date of bringing...

LIC IPO: Government may decide this week on the date of bringing IPO of LIC

LIC IPO: The government is likely to take a decision on the date of holding the Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC) within this week. A senior official said this. The sale of five per cent stake or 316 crore shares in LIC was earlier scheduled to take place in March but was postponed due to geopolitical tensions.

Govt has time till 12th May
Government has initial public issue (IPO) of Life Insurance Corporation (LIC) without filing fresh documents with Securities and Exchange Board of India (SEBI) There is time till May 12 to bring ) . An official said, ‘‘A decision on when to go for the IPO is likely to be taken this week.’’

Government currently has time
The underlying value of LIC has been worked out by Milliman Advisors, an international valuation company. The underlying value of the company as on September 30, 2021 was Rs 5.4 lakh crore. The underlying value is arrived at on the basis of the integrated value of the shareholders in the insurance company. If the government is not able to bring the IPO by May 12, then it will have to file fresh papers with SEBI stating the results of the December quarter.

FDI in LIC: Recently on April 17, the government has amended the rules of the Foreign Exchange Management Act (FEMA). With this, foreign direct investment (FDI) has opened up to 20 percent in the insurance sector giant Life Insurance Corporation (LIC). The government is planning to reduce its stake in LIC through an initial public offering (IPO).

documents were submitted in February
Let us tell you that LIC had submitted documents (DRHP) for IPO with the Securities and Exchange Board of India (SEBI) in February. Last month, SEBI approved the draft documents and now the insurance company is in the process of filing Request for Proposal (RFP) with changes.

- Advertisement -

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img


Two Wheeler


Digit News