The IPO of the country’s largest insurance company LIC (Life Insurance Corporation of India) may open on May 4. At the same time, it is likely to be closed on May 9. News agency PTI gave this information on Monday quoting sources. Through this IPO, the government will sell its 3.5 percent stake in LIC. This will bring Rs 21,000 crore to the exchequer. Based on the IPO, the valuation of LIC works out to Rs 6 lakh crore.
Earlier on Saturday, an official said the government stake sale is expected to raise around Rs 21,000 crore during the IPO, which opens in the first week of May. For its issue, LIC can file a final approval application with market regulator SEBI by Wednesday. Let us tell you that earlier the government was going to sell five percent stake in the country’s largest life insurance company.
LIC had filed the draft IPO document with the Securities and Exchange Board of India (SEBI) in February. Then LIC had said that the government would sell 5 per cent stake i.e. 316 crore shares. However, it was postponed for some time due to the volatility in the stock markets due to the Russia-Ukraine war. The changed situation has forced the government to bring down its size to 3.5 per cent.