new Delhi. According to a big news in the morning, LIC has got the necessary approval for IPO from SEBI. At the same time, the central government will sell its 5% stake in LIC. In this way the government will raise 63 thousand crores from this biggest IPO. In the application given by LIC to SEBI, it has also been said that the government will sell 31 crore shares of the company.
At the same time, 10% stake will be reserved for policy holders in this IPO. The government has 100% stake or 632.49 crore shares in LIC. This will be the biggest IPO in the history of the country. Earlier, Paytm had brought the biggest IPO of 18300 crores in the year 2021. On the second number was the IPO of Coal India which came in 2010. At that time the company had raised about 15500 crores at that time. At number three was Reliance Power’s IPO of Rs 11700 crore in 2008.
Significantly, LIC had applied for its DRHP with SEBI on February 13, 2022. At the same time, according to the draft papers, the company will sell more than 31 crore shares through offer-for-sale (OFS). Along with this, the central government will sell its 5% stake in the company to the public. Retail investors can apply for 35% of the total shares. On the other hand, Qualified Institutional Buyers (QIBs) can apply for 50% of the balance. In this way, now LIC can give a big and tough challenge to private insurance companies by turning its business in the direction of non-participating policy in the coming times.