With the Russia-Ukraine war and its ensuing impact on global financial markets, including India, all eyes here are now on the LIC IPO. The geopolitical tension has led to some uncertainty about the launch timeline of the mega LIC IPO as government officials and investment bankers believe March may not be the best time for its launch. Sources claim that the LIC IPO may see the light of day in April.
Government is constantly watching the ever-evolving market situation and is expected to take a call on the red herring prospectus accordingly.
Market regulator SEBI (Securities and Exchange Board of India) approved the draft red-herring prospectus (DRHP) filed by the LIC. Sources claim that the final observation letter from SEBI was sent late Tuesday night.
LIC had filed its DRHP on February 13 and in just about 22 days, it received the approval. It is believed that this could as well be one of the fastest approvals received by the SEBI.
The LIC public issue would be the biggest IPO in the history of the Indian stock market. The government had earlier projected to garner Rs 1.75 lakh from disinvestment during 2021-22. The IPO is an offer for sale (OFS) by the Government of India and there is no fresh issue of shares by LIC. The government holds 100 percent stake or over 632.49 crore shares in LIC. The face value of shares is Rs 10 apiece.
Once listed, LIC's market valuation would be comparable to top companies like RIL and TCS. So far, the amount mobilised from IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore, and Reliance Power (2008) at Rs 11,700 crore.
(With PTI inputs)
(Edited by : Dipikka Ghosh)
First Published: Mar 9, 2022 1:47 PM IST
