The much-awaited initial public offering (IPO) of life insurance behemoth Life Insurance Corporation (LIC) will be open on May 4 and end on May 9. Over 22 crore shares are up for grabs -- amounting to around 3.5 percent stake in the insurance giant. The centre is aiming to raise around Rs 21,000 crore.
To discuss the implications of the IPO, whether the valuation is attractive enough, amidst other issues, CNBC-TV18 spoke to Nilesh Sathe, a former member of IRDAI; Rajeev R Shah of RBSA Advisors; and Nitin Raheja of Julius Baer.
Sathe believes that it was good that the issue was postponed because the government got time to have a relook into valuations, anchor investors, etc. He added that the issue size, which they had thought of in March, would not have sailed through compared to now when it has been reduced.
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Raheja said, “I think this is all seems to be falling in place for LIC IPO. Even the issue size has been reduced, it is a great way to give the broader public as well as policyholders a sort of a taste of the company by curtailing the issue down so that it doesn’t upset the applecart in the market, as well as the pricing being what the way it has been devised I think it is a very, very appropriate price.”
For full interview, watch accompanying video
First Published: Apr 27, 2022 4:57 PM IST