There is good news for the investors waiting for the opening of the IPO of the country’s largest insurance company LIC. According to the information, LIC’s IPO can come in the stock market in the first week of next month. The government can invest about 3.5 percent stake in the company through this IPO.
A senior official told news agency PTI that “The government may launch LIC’s IPO in the stock market in the first week of May. The government plans to sell around 3.5 per cent stake in the IPO.
Country’s biggest IPO: LIC’s IPO is going to be the biggest IPO in the country. Its size will be around Rs 21 thousand crore, and accordingly the valuation of the company will be around Rs 6 lakh crore. LIC can submit the red herring prospectus for this with the market regulator SEBI by Wednesday.
IPO size reduced due to market downturn: The Indian stock market has been in a downtrend for the last 6 months. At the same time, Russia-Ukraine war and continuous selling to foreign investors made this situation more serious, due to which LIC has reduced the size of IPO from 5 per cent to 3.5 per cent. According to the draft paper submitted to market regulator Sebi in February, LIC had proposed to sell 5 per cent stake and 316 crore shares.