LIC IPO: The country’s largest IPO countdown has begun. Life Insurance Corporation (LIC) has applied to SEBI for an IPO Dipam’s secretary said the information. He said that DRHP (draft paper) for LIC IPO has been submitted today.
DRHP of LIC IPO has been filed with SEBI today. pic.twitter.com/jM9CDBMWVH
– Secretary, Deepam (eSecyDIPAM) February 13, 2022
It is said that the size of the IPO could be around Rs 63,000 crore. The total equity size will be 632 crore shares. The government is selling 5 percent shares. The government will sell about 31.6 crore shares.
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Will become the largest listed company in the country
The government currently owns 100 per cent stake in LIC. Once listed, it could become the largest company in the country by market capitalization with an estimated valuation of Rs 8-10 lakh crore. To facilitate enrollment, the government has increased the authorized capital of LIC from Rs 100 crore to Rs 25,000 crore.
The investment target is Rs 1.75 lakh crore
According to reports, LIC’s IPO is important to meet the investment target of Rs 1.75 lakh crore set for the current financial year (April-March). So far this financial year, PSUs have raised Rs 9,330 crore through investments. In September last year, the government hired 10 merchants, including Goldman Sachs (India) Securities Pvt. Ltd., Citigroup Global Markets India Pvt. Ltd. and Nomura Financial Advisory and Securities (India) Pvt. Is recruited.
They are also merchant bankers
Other selected bankers include SBI Capital Markets Ltd., JM Financial Ltd., Axis Capital Ltd., BofA Securities, JP Morgan India Pvt Ltd., ICICI Securities Ltd. And Kotak Mahindra Capital Company Ltd. Cyril Amarchand Mangaldas has been appointed as the legal advisor of the IPO. The government is in the process of deciding to invest the amount of public partnership through IPO.
