Mammoth Rs 60,000 IPO could launch on March 11, sources tell Investing.com
By Malvika Gurung
Investing.com — The long-awaited IPO of the country’s largest insurer, LIC, could finally begin on March 11, according to people familiar with the matter.
The , which is expected to be the largest in the country’s history at $8 billion, is expected to open to flagship investors on March 11, 2022, Reuters reports, as three inside sources said.
According to these sources, by the first week of March, the public insurer’s IPO will gain regulatory approval, followed by the establishment of an indicative marketing price range. The book will be open for auction after that.
According to the DRHP filed by the insurer with market regulator SEBI, the Center will sell 31.6 crores of shares or 5% of its stake in the company to raise nearly $8 billion.
The issue price is expected to be between Rs 2,000 and 2,100/share, and the insurance heavyweight would give its policyholders and employees a discount of around 10% off the floor price.
Finance Minister Nirmala Sitharaman, in her budget speech on February 1, 2022, revised the divestment target from Rs 1.75 lakh crore to Rs 78,000 crore for FY22.
On the newly revised target, the government raised only Rs 12,000 crore.
Hence, the Center is working towards completing the IPO of LIC by the end of this fiscal year in March, which can raise about $8.03 billion or about Rs 60,000 crore, thus reaching its FY22 divestment target.
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