[ad_1]
Read more
The insurance regulator has cleared the proposal for the listing of much-awaited LIC IPO on Thursday, according to sources.
The central government is mulling to offload 5 per cent of the shares it owns in the country’s biggest insurer. The government might sell 316 million shares of the 6.32 billion shares it holds in the Life Insurance Corporation of India. The embedded value of the company has been estimated at over Rs 5 lakh crore. The valuation of LIC IPO will be likely to around three to five times the embedded value.
At over Rs 15 lakh crore estimated valuation, LIC IPO is all set to be the biggest-ever stock listing. “We will be ready to file the draft prospectus as soon as the final embedded value is communicated and we are working with a timeline of doing that by month end,” one of the banking sources said earlier.
“With the government’s decision to reserve 10 per cent of the total issue for policyholders, we are expecting some discount to the issue price for policyholders,” said Arijit Malakar, head of retail equity research at Ashika Group.
Policyholders need to link PAN-LIC and open demat accounts to participate in the share sale.
Read all the Latest News, Breaking News and Coronavirus News here.
[ad_2]
Source link