Life Insurance Corporation of India's initial public offering (IPO) is likely to file its Draft Red Herring Prospectus (DRHP) on February 11, reported Money Control. It was also reported that Insurance Regulatory and Development Authority (IRDAI) cleared the LIC IPO proposal in a board meeting on February 9.
The amount of divestment and embedded value numbers will be mentioned in the DRHP, Money Control reported.
Recently, it was reported that the government is eyeing a valuation of ₹14 lakh crore for the state insurer, making it the second-largest listed company by market cap.
The government is even believed to be contemplating a two-part IPO of LIC because of apprehensions over the market's potential to absorb such a large primary issue at one go.
LIC is one of the largest corporations in India, so its IPO launch would be the largest public offering ever in the history of Indian financial markets.
LIC is owned entirely by the Government of India. The LIC IPO is critical to fulfilling the disinvestment target of ₹1.75 lakh crore set for the current financial year, which ends in March 2022.
While presenting the Union Budget for 2022-23, Finance Minister Nirmala Sitharaman told the Parliament that the LIC’s IPO is likely to roll out soon.
Nirmala Sitharaman had assessed the development of the LIC's initial public offering (IPO) in a discussion with top ministry officials only days before the Budget 2022 presentation. In order to aid the seamless launching of the insurance behemoth, the government recently increased the tenure of LIC chairman M.R. Kumar for another year. Kumar is expected to stay on as LIC's chairman until March 2023.