LIC IPO: Date, how to apply, check share allotment for policyholders, employees, investors
India Today
The LIC IPO's launch date has been announced and it will be an opportunity for Life Insurance Corporation of India's policyholders and employees and investors to try their luck.
Life Insurance Corporation of India's (LIC) initial public offering (IPO) is all set to open on May 4 and close on May 9. The government will sell a 3.5 per cent stake in state-owned Life Insurance Corporation (LIC) to garner Rs 21,000 crore to the exchequer.
So far, Paytm IPO in 2021 was the largest ever IPO in India at Rs 18,300 crore, followed by Coal India in 2010 at nearly Rs 15,500 crore and Reliance Power in 2008 at Rs 11,700 crore.
The government has also filed papers with Sebi seeking exemption from the 5 per cent stake sale norm. According to the Securities and Exchange Board of India (Sebi) norms, companies with a valuation over Rs 1 lakh crore have to sell a 5 per cent stake in an IPO.
LIC's embedded value, which is a measure of the consolidated shareholders value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
Based on investor feedback, the market value of government-owned LIC has been pegged at 1.1 times its embedded value or Rs 6 lakh crore.
The government had in February planned to sell 5 per cent stake or 31.6 crore shares in the insurance behemoth and had filed draft papers with Sebi. However, last week, the government decided to lower the issue size to 3.5 per cent.
The LIC IPO would contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal. The government has pegged disinvestment receipts at Rs 65,000 crore in the current financial year, up from Rs 13,531 crore mopped up last fiscal.
