New Delhi | Jagran Business Desk: The much-awaited and touted to be the biggest initial public offering, IPO of the Life Insurance Corporation of India is likely to open in May. As per the latest media reports, the same LIC IPO will open on May 4 and close on May 9. In March 2022, the Securities and Exchange Board of India (SEBI) approved the initial public offering proposal of LIC. The company has filed the Draft Red Herring Prospectus with the market regulator.

Meanwhile, reportedly, LIC has cut the size of IPO from 5 per cent to 3.5 per cent due to the market condition. A proposal to reduce the size of LIC's IPO to 3.5 per cent from 5 per cent proposed in its draft red herring prospectus (DRHP) was tabled and approved at a board meeting held on Saturday.

Now, the government which wholly owns the insurance behemoth plans to sell a 3.5 per cent instead of 5 per cent as mentioned in the previous Draft Red Herring Prospectus (DRHP) according to the reports. The LIC IPO will fetch the government Rs 21,000 crore and the IPO values LIC at Rs 6 lakh crore. As per reports, the government is likely to price LIC IPO at Rs 950-1,000 per share.

Reservations for policyholders and employees, discounts, issue dates and issue price will be known by Wednesday, PTI reported.

However, LIC has time until May 12 to launch the IPO. If it is not done by May 12, the company would be required to file fresh papers with the market regulator.

The lesser-known, LIC IPO has received ₹13,000 crores worth of investment commitments from anchor investors, more than twice the value of shares offered to such investors, Mint reported citing sources.

LIC is valued at ₹6 trillion, which is just 1.1 times its original embedded value of ₹5.39 trillion, according to the revised estimates of the government. LIC IPO would contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal.

The government had initially wanted to list LIC in the last financial year that ended March 31 but had to delay the sale after the Russia-Ukraine war triggered a market rout.

(With Agencies Inputs)

Posted By: Ashita Singh