The IPO of the country's largest insurance company LIC has got the approval of market regulator SEBI. A report quoted sources as saying that SEBI has given a green signal to raise funds through IPO. According to the draft red herring prospectus (DRHP) filed with Sebi, the government will sell a 5 percent stake in the life insurance firm to meet its disinvestment target of Rs 78,000 crore in the current fiscal.
Documents submitted on February 13
The government will sell more than 31 crore equity shares of LIC and through this, the company plans to raise Rs 63000 crore. Let us inform you here that on behalf of LIC, the government had submitted DRHP i.e. IPO proposal with SEBI on February 13. Due to the ongoing war between Russia and Ukraine, there was also a possibility that the government may miss the disinvestment target this year and LI's IPO may be postponed to the next financial year.
10% share for policyholders
As per the documents, a portion of LI's IPO will be reserved for anchor investors. Apart from this, up to 10 percent of the LIC IPO issue size will be reserved for policyholders and five percent for employees. Let us tell you that this IPO of LIC will be the biggest in the history of the country so far.
Offer for Sale IPO
This IPO of LIC will be the biggest IPO to date. As per the DRAP submitted to SEBI, the issue of LIC will be purely offered for sale. In this, the government will issue 31.6 crore shares under its 5 percent stake. According to the report, the embedded value of the company will be Rs 5.4 lakh crore. Normally the market cap of an insurance company is four times this value. According to this, the market value of LIC will be $ 288 billion i.e. about Rs 22 lakh crore and LIC will become the largest valued company in the country.
20% FDI allowed
It is worth noting that in the cabinet meeting held recently, a big decision was taken regarding LIC IPO. FDI was allowed in IPO-bound LIC. In the meeting, approval was given for foreign direct investment (FDI) up to 20 percent in LIC through the automatic route. After this decision, the way for foreign investment in the proposed IPO of LI has been opened.
Remains of ancient temple found during excavation of Shri Ram Janmabhoomi in Ayodhya, see picture
Remains of an ancient temple have been found during excavation at Shri Ram Janmabhoomi. Which inc
Amitabh Bachchan got injured while shooting in Hyderabad. He gave this information on his blog on
ED Raid: Prem Prakash arrested in an illegal mining case, ED found two AK-47 rifles in a raid
ED has arrested Prem Prakash in Jharkhand illegal mining case. The ED had raided several location
The nation is all set to celebrate its 77th Republic Day. As every year, a grand parade and speci
Railway Minister Ashwini Vaishnav on Monday said that the government is giving top priority to sa
During the third Test in Indore on Friday, a case of two fans entering the dressing room of Team
As soon as the month of Sawan begins, the Kanwar Yatra also begins. These days, the Kanwar Yatra
The last league match of the IPL 2022 season was played between Sunrisers Hyderabad and Punjab Ki
Ranveer Singh receives another threat, Dhurandhar actor's close associates are the target
A man named Hari Boxer of the Lawrence Bishnoi gang has released a new audio message threatening
The Russia-Ukraine war is completing one year on 24 February. Just 3 days before this, Russian Pr
