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By Malvika Gurung
Investing.com — The much-awaited initial public offering of the country’s largest insurer LIC could finally launch on March 11, as per sources privy to the matter.
The
LIC IPO
, set to be the biggest ever in the country’s history at $8 billion is anticipated to open for anchor investors on March 11, 2022, reports Reuters, as conveyed by three internal sources.
As per these sources, by the first week of March, the state-run insurer’s IPO will obtain regulatory approval, followed by setting up an indicative marketing price band. The book will open for bidding after this.
As per the DRHP filed by the insurer to the markets regulator SEBI, the Centre will sell 31.6 crore equity shares or 5% of its stake in the company to raise almost $8 billion.
The issue price is expected to be in the range of Rs 2,000-2,100/share, and the insurance heavyweight is rumoured to give its policyholders and employees a discount of about 10% over the floor price.
Finance Minister Nirmala Sitharaman in her Budget speech on Feb 1, 2022, revised the disinvestment target of Rs 1.75 lakh crore to Rs 78,000 crore for FY22.
Of the newly revised target, the Government has raised only Rs 12,000 crore.
Consequently, the Centre is working towards completing the IPO of LIC by the end of this FY in March, which can raise about $8.03 billion, approximately Rs 60,000 crore, thereby meeting its FY22 divestment target.
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