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LIC IPO: Govt may file updated draft red herring prospectus with SEBI, says report

As per current DRHP, government has decided to dilute 5% stake in the LIC IPO

FPJ Web Desk | Updated on: Tuesday, April 12, 2022, 11:27 AM IST

The government was expecting to garner Rs 63,000 crore by selling a 5 percent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.
/ Representative image |
The government was expecting to garner Rs 63,000 crore by selling a 5 percent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal. / Representative image |
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The mega LIC IPO will be launched by end of this month, according to news reports.

The government may file an updated draft red herring prospectus (UDRHP) of the IPO with the market regulator Securities and Exchange Board of India, CNBC-TV18 said citing sources.

An RHP, also known as an offer document, is filed by a company to SEBI ahead of a public listing.

As per current DRHP, government has decided to dilute 5 percent stake in the LIC IPO, reports said.

The government plans to raise around Rs 60,000 crore by selling about 31.6 crore or 5 percent stake in Life Insurance Corporation of India through an initial public offering (IPO).

The IPO aims to utilize the net proceeds towards achieving the benefits of listing the equity shares on the stock exchange, and to carry out an offer for sale of 316,249,885 shares by selling shareholders.

Amid uncertainties around the Ukraine conflict, the Centre had earlier decided to put on hold its LIC IPO decision for some time and wait for the financial market to stabilize.

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Published on: Tuesday, April 12, 2022, 11:27 AM IST