Begin typing your search above and press return to search.
Suicides of entrance aspirants in Kota
access_time 30 Sep 2023 5:47 AM GMT
Green memory of Dr Swaminathan
access_time 29 Sep 2023 11:59 AM GMT
One more (anti-)Kerala fake story misfires
access_time 28 Sep 2023 4:04 AM GMT
Will Yogi set store by the Supreme Court?
access_time 27 Sep 2023 5:08 AM GMT
The silent whimper of advasis
access_time 26 Sep 2023 4:31 AM GMT
Schools breeding hatred
access_time 14 Sep 2023 10:37 AM GMT
access_time 16 Aug 2023 5:46 AM GMT
Remembering the Teachers
access_time 5 Sep 2023 6:24 AM GMT
Homechevron_rightBusinesschevron_rightMarket volatility may...

Market volatility may force Govt to cut LIC IPO size

Market volatility may force Govt to cut LIC IPO size

Mumbai: The ongoing market volatility may prompt the government to cut the size of the initial public offering (IPO) of LIC to 3.5% from a 5% to around Rs 21,000 crore. The government is all set to launch LIC IPO in the first week of the next month.

The government in February had planned to sell a 5% stake in Life Insurance Corporation (LIC). However, the ongoing market volatility due to the Russia-Ukraine war has made it lower the IPO size.

At this price, LIC, which is 100% government-owned, is valued at Rs 6 lakh crore. LIC is likely to file the red herring prospectus with market regulator Sebi by Wednesday, April 27. "LIC IPO is likely to come to the market in May first week. 3.5% stake dilution, subject to regulatory approval," an official said. Reservations for policyholders and employees, and discounts, issue dates and issue price will be known by Wednesday, the official added.

In February, LIC had filed draft papers with Sebi wherein it had said that the government will sell 5% stake or 31.6 crore shares in the state-run insurer. 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.

LIC IPO would contribute a major chunk of the budgeted disinvestment proceeds in the current fiscal. The government has pegged disinvestment receipts at Rs 65,000 crore in the current fiscal, up from Rs 13,531 crore raised in the last fiscal.

Show Full Article
TAGS:LIC IPOShare Market
Next Story