LIC Of India is going to launch India's Biggest Ever IPO by Mid March

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LIC to is going to launch India's Biggest Ever IPO by Mid March

 

Life Insurance Corporation, LIC one of India's largest insurers will launch its Initial Public Offering, IPO by March, and file its draft papers with market regulator Sebi by the end of this month, officials stated on Thursday.

LIC's IPO is said to be India's biggest-ever IPO, with the government aiming to raise up to $12.2 billion from selling a stake.

Finance Minister Nirmala Sitharaman had last week reviewed the progress of the initial public offering (IPO) of Life Insurance Corporation (LIC) in a meeting with top officials of the ministry.

The official said the September 2021 quarter financials of LIC are getting finalised as well as fund bifurcation is in progress.

"We are hopeful of filing the DRHP (draft red herring prospectus) with Sebi by month-end or early February. One thing is for sure that IPO will come before the end of the current fiscal," PTI reported. 

LIC IPO is crucial for meeting the Rs 1.75-lakh crore disinvestment target set for the current financial year ended March 2022. So far this fiscal, Rs 9,330 crore has been mopped up through PSU disinvestment.

The government in September last year appointed 10 merchant bankers, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd to manage the mega initial public offering of the country's largest insurer LIC.

Other selected bankers include SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, JPMorgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd.

Cyril Amarchand Mangaldas has been appointed as legal advisor for the IPO.

The government is in the process of deciding the quantum of government stake that will be divested through the IPO.

The government is also mulling allowing foreign investors to pick up stakes in the country's largest insurer LIC.

According to Sebi rules, foreign portfolio investors (FPI) are permitted to buy shares in a public offer. However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.

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