Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Wed, 09 Mar 2022 10:18 AM IST
Summary
The way has been cleared for the launch of the biggest IPO in the country’s history. Actually, market regulator SEBI has given green signal to LIC’s IPO. The government had submitted documents for the IPO with SEBI on February 13. Through this IPO, the government is selling its five percent stake.
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Expansion
Documents submitted on February 13
The government will sell more than 31 crore equity shares of LIC and through this the company plans to raise Rs 63000 crore. Let us inform here that on behalf of LIC, the government submitted the DRHP i.e. IPO proposal with SEBI on February 13. Due to the ongoing war between Russia and Ukraine, there was also a possibility that the government may miss the disinvestment target this year and LI’s IPO may be postponed to the next financial year.
10% share for policyholders
As per the documents, a portion of LI’s IPO will be reserved for anchor investors. Apart from this, up to 10 percent of the LIC IPO issue size will be reserved for policyholders and five percent for employees. Let us tell you that this IPO of LIC will be the biggest IPO in the history of the country so far.
Totally Offer for Sale IPO
This IPO of LIC will be the biggest IPO till date. As per the DRAP submitted to SEBI, the issue of LIC will be purely offer for sale. In this, the government will issue 31.6 crore shares under its 5 per cent stake. According to the report, according to this the embedded value of the company will be Rs 5.4 lakh crore. Normally the market cap of an insurance company is four times this value. According to this, the market value of LIC will be $ 288 billion i.e. about Rs 22 lakh crore and LIC will become the largest valued company of the country.
20% FDI allowed
It is worth noting that in the cabinet meeting held recently, a big decision was taken regarding LIC IPO. In fact, FDI was allowed in IPO-bound LIC. In the meeting, approval of Foreign Direct Investment (FDI) up to 20 percent was approved in LIC through the automatic route. After this decision, the way for foreign investment in the proposed IPO of LI has been opened.