LIC may File Revised IPO Papers Next Week

Life Insurance Corporation (LIC) of India’s board will likely meet over the weekend to finalise its result for FY22 and subsequently, the insure will file revised public offer document by mid-next week, people familiar with the matter told ET. Roadshows for the initial public offer (IPO) would start soon after and the issue is expected to open by the end of the month, they said. The government is keen to complete LIC’s public issue, likely to be the first gest ever in the country, by the first week of May given the choppy stock market and assorted ricks arising from geopolitical event as well as rising inflation. “Listing would be completed by May 12” said a government source. After the results are approved by the board, these would be sent to the Insurance regulatory and Development Authority of India and a revised offer document would be filed after that, said a person familiar with the development, detailing the process over the next few weeks. The draft offer document filed by LIC has proposed a 5% dilution by the government. However, if the response is good, the government may offer another 2%. “The idea is to send out a message to the market and also investors, “a top government official said. The insurer’s IPO was expected to be launched in March, but the issue was delayed following the volatility in the market due to the Ukraine – Russia conflict. The stock market has turned choppy again following concerns over inflation and likely monetary tightening in India as well as most of the developed world. The government has budgeted ₹65,000 crore from disinvestment in the current financial year. With the embedded value of LIC estimated at ₹5.4 lakh crore, the Center may raise ₹60,000-70,000 crore through the 5% stake sale. If the initial public offer (IPO) does not take place by May 12, LIC will need to update the offer document with the audited financial for FY22 which could future delay the process.

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