LIC IPO: The government is planning to file final papers for the LIC’s Initial Public Offering (IPO) with market regulator the Securities and Exchange Board of India (Sebi). The LIC public issue would be the biggest IPO in the history of the Indian stock market. Once listed, LIC’s market valuation would be comparable to top companies like RIL and TCS. So far, the amount mobilised from IPO of Paytm in 2021, was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
Kotak Mahindra Capital Company, Axis Capital, BofA Securities, Citigroup Global Markets, Nomura Financial Advisory, Goldman Sachs (India) Securities, ICICI Securities, JM Financial, JP Morgan India Private Limited, and SBI Capital Markets are the book-running lead managers for the issue. On the other hand, KFin Technologies Private Limited is the registrar to the offer.
LIC IPO: Details on Price Band, Discount Rate
This will provide details about the price band, discount for policyholders and retail buyers, and the actual number of shares to be put on the block, an official said told PTI.
“We have got the approval of the DRHP and the next step would be to file the RHP, which will give details of the price band and the actual number of shares. We are watching the situation, and soon we will take a call on the timing of the share sale,” an official told the news agency.
LIC IPO: Reserved Portions
The issue is likely to have reservations for eligible employees and LIC policyholders of the company, according to the DRHP. One-third of the anchor portion will be reserved for domestic mutual funds.
LIC IPO: Launch Date
The Securities and Exchange Board of India (Sebi) has cleared the draft red herring prospectus (DRHP) of the state-owned Life Insurance Corporation of India (LIC). LIC had, on February 13, filed the draft papers. However, the government is presently in the wait-and-watch mode because of the market volatility induced by the Russia-Ukraine war and will decide on the timing of the initial public offering (IPO) of Life Insurance Corporation (LIC) soon.
LIC IPO: Embedded value
The DRHP disclosed the LIC’s embedded value at Rs 5,39,686 crore as of September 30, 2021. For life insurers, one of the most effective ways of calculation is through Embedded Value (EV) to arrive at their IPO value. The EV is the sum total of the present value of all future profits from existing business plus net worth, which includes capital.
LIC IPO: Results
LIC, announcing its Q3 results yesterday said its fiscal third-quarter profit after tax jumped to Rs 234.91 crores, from a mere Rs 0.91 crore in the same quarter in the previous year, primarily due to a change in funds redistribution policy. The company had booked a profit worth Rs 29,102 crore from the sale of investments in the first six months of the current financial year.
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