Last Updated on May 2, 2022 by Vyshakh
As the company prepares to publish its draft red herring prospectus (DRHP) this week, the much-anticipated initial public offering (IPO) of insurance giant Life Insurance Corporation of India (LIC) might be launched with a 5% discount for policyholders.
To know more about the LIC IPO, follow our article here: LIC IPO: Date, Price, Review, News, Application and Details!
Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), mentioned last week that the state-run insurance company is expected to file its DRHP this week, on 10 February 2022, as per a source. Additionally, retail bidders and staff are expected to receive some price concessions on the pricing range.
In a recent interview with Reuters, Mr Pandey said that the inherent value of LIC might be more than Rs. 5 lakh cr., with the enterprise value being multiples of that.
The DRHP will expose the government’s interest in the LIC, which will be diluted through an IPO. The government is expected to sell a 5-7% share in the IPO, according to the sources, in order to raise Rs. 65,000-75,000 cr.
