LIC will file DRHP in two days, got board’s approval

The public sector insurer will soon file a draft Red Herring Prospectus (DRHP) with the Life Insurance Corporation’s board’s nod on Sunday.

Along with this, with the approval of SEBI, LIC can bring an initial public offering (IPO) in a few days.

Sources said that LIC’s board has approved the IPO in its meeting.

Sources said the preparations have been completed and the DRHP may be filed on Monday or Tuesday.

LIC’s IPO assumes significance for the government amid the projection of a shortfall in the government’s disinvestment target by Rs 78,000 crore for the current fiscal. The government has so far raised around Rs 12,000 crore through the privatization of Air India and stake sale in other PSUs.

LIC had a domestic market share of over 64.1 per cent in 2020. According to Crisil’s report, LIC is the third largest company in the world in terms of life insurance premiums.

According to the report, LIC’s market share was 100 percent in the pre-2000 era, which gradually came down to 71.8 percent in 2016. In 2020, LIC’s market share further reduced to 64.1 percent. SBI Life, the second largest life insurer in the country, had a market share of just five per cent in 2016 and eight per cent in 2020.