LIC IPO: Fresh DRHP Filed; New Issue Size Approved; Know Launch Date, Price, More Info

LIC IPO: Fresh DRHP Filed; New Issue Size Approved; Know Launch Date, Price, More Info For the LIC IPO, the government has submitted a new draught red herring prospectus (DRHP) with markets regulator Sebi, and a red herring prospectus (RHP) is expected to be issued in the first half of next week. According to CNBC-TV18, the Securities and Exchange Board of India (Sebi) is anticipated to approve Life Insurance Corporation's (LIC) amended DRHP on Monday. The Life Insurance Corporation's (LIC) initial public offering is set to begin trading in the first week of May, and the company's board of directors has approved a smaller issue size. The government has chosen to dilute its 3.5 percent interest in the LIC IPO for Rs 21,000 crore, rather than the projected 5 percent in the draught papers. The government is expected to price the LIC initial public offering at Rs 950-1,000 per share. LIC is estimated to be valued at roughly 1.1X price/embedded value in its initial public offering. At a board meeting on Saturday, a proposal to cut the IPO's size from the anticipated 5% to 3.5 percent was tabled and agreed. Here's what we know thus far regarding the IPO: Size of the LIC IPO The government would sell its 5% stake in state-owned LIC through the IPO, according to LIC's draught red herring prospectus. Now, for Rs 21,000 crore, the stake dilution has been lowered to 3.5 percent, valuing the country's largest insurer at Rs 6 lakh crore. A greenshoe option of Rs 9,000 crore is also anticipated to be included in the IPO. An over-allotment option is known as a greenshoe option. The option allows the corporation to keep excess subscriptions and change the public offering based on demand and market conditions. Date of the LIC IPO Government sources informed CNBC-TV18 that the initial public offering is expected to go public in the first week of May. The government submitted new draught papers for the initial public offering (IPO) earlier this month. The Centre now has until May 12 to launch the offer, after which it will have to file new documents with the markets regulator Sebi. It must also announce the December quarter's results and update the embedded value. According to draught papers, the LIC's embedded value was Rs 5.39 lakh crore on September 30, 2021.

LIC IPO Reserved Quota