The IPO of Life Insurance Corporation of India's will be launched early in May this year, sources told CNBC-TV18 today (April 5)
Sources added that the government is in touch with bankers and financial advisors on the red herring prospectus (RHP). An RHP, also known as an offer document, is filed by a company to SEBI ahead of a public listing.
According to sources, the updated draft red herring prospectus includes the third quarter financial results of LIC. The IPO-bound insurer reported a net profit of Rs 235 crore in the third quarter of the fiscal as against Rs 90 lakh a year ago, News18 said. It had earlier only provided financial results until September 2021.
The Centre will likely offer to sell a 5.5-6 percent stake in the final offer document for the IPO instead of 5 percent indicated earlier, according to Financial Express that cited a senior official. The issue is likely to hit the market in “two to three weeks”, the report said.
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.