LIC’s IPO approved by SEBI: Government will sell 31 crore equity shares, 10% share reserve for policy holders

A big news is coming about the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC). According to media reports, LIC’s IPO has been approved by the market regulator SEBI. According to the draft red herring prospectus (DRHP) filed with the market regulator, the government will sell over 31 crore equity shares under LIC’s IPO.

Biggest IPO will be
LIC’s issue will be the biggest IPO ever in the Indian stock market. After listing, the market valuation of LIC will be at par with top companies like RIL and TCS. Prior to this, Paytm’s issue was the biggest and the company had raised Rs 18,300 crore from IPO last year.

20% FDI allowed in LIC
Recently, the Union Cabinet has changed the FDI policy to include foreign investors in this IPO. Under this change, foreign investment has been allowed in LIC’s IPO under the automatic route up to 20%.

10% share reserve for policy holders
As per DRHP, 10% share will be reserved for LIC policy holders under the reservation portion. Maybe they can get a discount of 5% in the share price. Give

IPO draft was submitted on February 13
The country’s largest state-run insurance company had submitted the draft IPO (DRHP) to the market regulator SEBI on February 13, 2022. According to this, the company will sell about 31.6 crore or 5% shares. According to DRHP, 10% shares will be reserved for LIC policy holders in the IPO. They may also get a discount of 5% in the share price. To take advantage of the reservation, the PAN of the policy holders should be updated.