LIC IPO News Update: The government has till May 12 to bring an initial public offering (IPO) of Life Insurance Corporation (LIC IPO) without filing fresh documents with the Securities and Exchange Board of India (Sebi). The government had earlier planned to go for an IPO in March for sale of around 316 crore shares or five per cent stake in LIC. The IPO was expected to raise around Rs 60,000 crore.
However, after the Russia-Ukraine crisis, the IPO plan has been derailed due to the huge volatility in the stock market. “We have time till May 12 to bring the IPO on the basis of documents filed with SEBI. We are monitoring the volatility and will file the RHP with the price range soon.”
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If the government is not able to bring the IPO by May 12, then it will have to file fresh papers with SEBI stating the December quarter results. The official further said that though the volatility in the market has eased in the last fortnight, it will be waited for the market to stabilize further, so that retail investors can be confident of investing in the stock.
LIC has reserved up to 35 per cent of its total IPO size for retail investors. “Around Rs 20,000 crore is needed to fully fill the portion reserved for retail investors. As per our market assessment, the current retail demand is not sufficient to fill the entire quota of shares.