LIC IPO Update: LIC IPO May Launch date to be finalised Soon

The government can announce the date of LIC IPO in the next day or two. A senior Finance Ministry official said that by the end of this week, a decision will be taken to bring the LIC IPO. LIC’s IPO was planned to be launched in early March this year, but due to the Russo-Ukraine war, LIC’s IPO was postponed.

“A decision on the timing of the IPO will be taken this week,” the official said. The official said it will be difficult to decide whether to go ahead with demand from retail and domestic investors or wait for geopolitical tensions to ease and FIIs back in the market. He further said that the price of the IPO will have to be fixed in such a way that the stock gains momentum on the day of listing and the investors get rewarded.

He said, “LIC is already a mature company and has witnessed growth in business since its inception. The market will have to be evaluated keeping in view the growth potential.”

If the government decides to bring the IPO after May 12, then the Department of Disinvestment of the Ministry of Finance will have to file a fresh draft red herring prospectus (DRHP) with SEBI because according to the DRHP filed earlier, LIC IPO should be brought before or on 12 May.  

According to experts, if the IPO is not brought by May 12, LIC’s IPO may be postponed till the next August-September as fresh DRHP will have to be filed with SEBI with fresh valuation after the quarterly results are out. Also the government has decided to sell its five percent stake in LIC.

In the current financial year 2022-23, the government has set a target of getting Rs 65,000 crore from disinvestment. It is believed that LIC’s IPO will go a long way in achieving this goal.