The Securities and Exchange Board of India (SEBI) has given approval to mega IPO proposal of Life Insurance Corporation (LIC) to help the government mobilise about Rs 63,000 crore to meet the disinvestment target for the current fiscal year. SEBI has given its nod to draft red herring prospectus (DRHP) filed by LIC on February 13, 2022.
The IPO would see sale of 31.6 crore shares or 5 per cent stake of the government. Also employees and policyholders of the insurance behemoth would get a discount over the floor price. The IPO is offer for sale (OFS) by Government of India and there will be no fresh issue of shares by LIC. The government holds 100 per cent stake or over 632.49 crore shares in LIC. The face value of shares is Rs 10 apiece.
As per norms, up to 5 per cent of the issue size can be reserved for employees and up to 10 per cent for policyholders. The IPO of LIC is expected by March and the proceeds would be crucial to meet the revised disinvestment target of Rs 78,000 crore for the current fiscal year.
Life Insurance Corporation, popularly known as LIC is Indian state-owned insurance group and investment company.
| Company Name | CMP |
|---|---|
| ICICI Prudential | 562.40 |
| General Ins. Corp | 400.00 |
| Star Health & Allied | 503.30 |
| Niva Bupa Health Ins | 80.04 |
| ICICI Lombard Gen. | 1890.80 |
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