LIC IPO Ready To Roll Out
The Life Insurance Corporation (LIC) has finally decided on a date to launch its Initial Public Offering (IPO) for all investors and traders. This much anticipated IPO is now likely to be released on May 4 and will be available to place a bid till May 9. As per the sources, the exact period will be available post-April 27.
A Cut In Stake From 5 Percent To 3.5 Percent
All the detailed info and exact timeline for LIC’s IPO will be available next week, as per sources. Through this largest IPO, the government is planning to sell its 3.5 per cent stake instead of 5 per cent earlier. The expected value of the issue size is ₹21,000 Cr which the government will acquire after selling a 3.5 per cent stake.
Expectations went far lower now with a 3.5 per cent stake sale, as before the Russia and Ukraine war the estimated value to be fetched was ₹50,000 Cr. LIC is now valued at ₹6 lakh Cr by the IPO from the previous estimation of ₹17 lakh Cr by the government.
The government has filed papers regarding getting an exemption from the norm of SEBI that makes it mandatory for a company to sell its 5 per cent stake in an IPO valued over ₹1 lakh Cr.
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LIC IPO Is Still India’s Biggest
Even though the Government has slashed down the size of LIC IPO, it’s still India’s Biggest ever sale. This public offering even surpasses the issue made by One 97 Communications Ltd. which raised ₹18,300 Cr last year.
Investors are very reluctant after the emergence of war, as the foreign investment worth $16 Billions has been withdrawn from the Indian stock market this year. The instance market volatility due to the Russia-Ukraine war has also forced the government to reduce the size of LIC IPO which previously was 5 per cent.
