If you want to know the details of Life Insurance Corporation of India (LIC) IPO from issue price to lot size, then this news can be of use to you.
In fact, LIC plans to file final documents for IPO with market regulator SEBI soon. These documents will contain details of the issue price, discount for policyholders, retail buyers and the actual number of shares. Explain that due to the volatility in the market due to the Russo-Ukraine war, the government wants to wait for some time to bring this IPO and only then will decide when to bring the IPO of LIC.
Approval has been received from SEBI: SEBI has approved the Draft Documents (DRHP) filed by LIC on February 13, 2022. This paved the way for the share sale. This will help the government raise Rs 60,000 crore to meet its disinvestment target for the current financial year.
According to DRHP, under the IPO, the government will sell 316 crore equity shares of LIC or its five per cent stake in the company. If this sale does not happen in March, the government will fall short of its revised disinvestment target for the current financial year.
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As per the draft documents, the underlying value of LIC has been worked out by Milliman Advisors, an international valuation company. The underlying value of the company as on September 30, 2021 was Rs 5.4 lakh crore. The underlying value is arrived at on the basis of the integrated value of the shareholders in the insurance company.
How much will be the valuation: The market valuation of LIC in DRHP has not been disclosed. However, by industry standards, it would be nearly three times the underlying value or Rs 16 lakh crore. The government has 100 percent stake or more than 632.49 crore shares in LIC. The face value of these shares is Rs 10 per share.