LIC IPO: The Centre is all set to launch Life Insurance Corporation of India’s initial public offering (IPO) by the second week of May this year, reported Zee Business’ Anurag Shah.
“The government is very keen on launching the LIC IPO before May 12, 2022. As the timeline of 3 months after filing the Draft Red Herring Prospectus (DRHP) marks its completion on May 12, ” said Zee Business special correspondent. Keeping this in mind, the government wants to launch the RHP before it, Shah added.
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Earlier the Government was set to launch its IPO in March 2022. However, due to market volatility in view of the Russia-Ukraine conflict, the Government couldn’t execute on the earlier timeline, he reported.
He added that the government is in touch with bankers and financial advisors on the red herring prospectus (RHP). An RHP, also known as an offer document, is filed by a company with the capital markets regulator Securities and Exchange Board of India (SEBI) ahead of a public listing.
He also added that the government might offer to sell more than 5 per cent of its stake in the LIC IPO.
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LIC IPO के RHP की तैयारी
LIC के IPO के लिए RHP जल्द फाइल होगा
LIC अगले कुछ दिनों में RHP फाइल करेगा
12 मई से पहले IPO लॉन्च करने का टार्गेट
— Zee Business (@ZeeBusiness) April 11, 2022
In the run-up to the mega IPO, on February 13, the government had filed the draft red herring prospectus (DRHP) with the regulator giving details of financial results till September. The DRHP got Sebi approval in March, 2022.
“Updated DRHP of LIC with December financials has been filed,” an official had told PTI, adding it was required to be done as per Sebi observations.
As per the updated financials, the Life Insurance Corporation reported a net profit of Rs 235 crore in the October-December quarter. The net profit in April-December, 2021, increased to Rs 1,671.57 crore from Rs 7.08 crore a year ago.
The government is expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.
(With inputs from PTI)