Govt to promote 3.5% stake in LIC, IPO to fetch Rs 21,000 cr

The authorities is prone to promote a 3.5 per cent stake in Life Insurance Corporation (LIC) by way of an preliminary public providing which can hit the markets within the first week of the subsequent month, an official stated.

The concern measurement is anticipated to be value Rs 21,000 crore, valuing the nation’s largest insurer at Rs 6 lakh crore.

LIC is prone to file the purple herring prospectus with market regulator Sebi by Wednesday.

“LIC IPO is likely to come to the market in May first week. 3.5 per cent stake dilution, subject to regulatory approval,” an official stated.

In February, LIC had filed draft papers with Sebi whereby it had stated that the federal government will promote 5 per cent stake or 31.6 crore shares within the state-run insurer.

However, the IPO plans confronted headwinds because of the ongoing volatility in inventory markets because of the Russia-Ukraine battle, forcing the federal government to chop the problem measurement to three.5 per cent.

Reservations for policyholders and workers, and reductions, concern dates and concern worth can be identified by Wednesday, the official added.