LIC Files Draft Paper for India’s Largest Public Issue

The government filed with the securities regulator to sell 5% of Life Insurance Corp of India in the biggest initial public offering in the country. It is expected to raise up to Rs65,000 crore drawing parallel with mega listings of state companies globally, such as Agricultural Bank of China and oil giant Saudi Aramco.

A two- year preparation came to fruition on Sunday, with the insurance giant filing a draft red herring prospectus (DRHP) to sell 316 million shares, likely valuing LIC at 12.5 lack crore. This would make it the most valuable state-owned India or Indian Oil Corp, the biggest in their sectors.

The government expects a quick approval for the IPO from the Securities and Exchange Board of India (Sebi) to complete the process this fiscal year.

“Sebi normally takes about three weeks (in vetting a DRHP). We have been sharing information about the offer with them in view of its large size and have kept them in the loop on various details,” Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (Dipam), told ET.

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