Home » News & Trends » LIC is expected to file a DRHP with SEBI tomorrow for its mammoth IPO

News & Trends

LIC is expected to file a DRHP with SEBI tomorrow for its mammoth IPO

LIC is expected to file a DRHP with SEBI tomorrow

LIC to file a DRHP with SEBI tomorrow for its mammoth IPO

File a DRHP with SEBI – Sources told Business Today TV on Wednesday that the government-owned Life Insurance Corporation of India (LIC) is likely to file its draught documents with market regulator SEBI for its massive initial public offering (IPO) tomorrow (February 10). 
 
Following SEBI approval, the offer is expected to hit the market in March, with up to 10% of the issue size earmarked for policyholders. 
 
DIPAM Secretary Tuhin Kanta Pandey had previously stated during the BT Budget RoundTable that the embedded value of LIC will be above Rs 5 lakh crore. 
 
The embedded value will be used to estimate the market value of LIC and how much money the government would raise through the IPO. This will be critical for the government to accomplish its divestment goals and keep the fiscal deficit under control. 
 
The government’s reliance on LIC’s listing is critical if it is to reach its revised revenue projections of Rs 78,000 crore in the current fiscal year. 
 
The government has raised over Rs 12,000 crore so far through the privatization of Air India and the sale of stakes in other PSUs. 
 
The embedded value of LIC was calculated by the actuarial firm Milliman Consultants LLP India, and pre-IPO transaction advisors Deloitte and SBI Caps were appointed. The present value of future earnings is also incorporated in the present net asset value of insurance firms using the embedded value technique (NAV).

LIC to File a DRHP with SEBI

Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd are among the 10 merchant bankers chosen by the government to manage the country’s largest insurer’s huge IPO. 
 
Separately, after consulting with the finance ministry, the Department for Promotion of Industry and Internal Trade (DPIIT) is making adjustments to the FDI policy to make disinvestment of LIC easier. 
 
“The public issue of the LIC is expected shortly,” Finance Minister Nirmala Sitharaman remarked in her Budget speech for 2022-23. According to Pandey, the embedded value of Life Insurance Corporation (LIC) has been determined, and the corporation now needs to seek clearance from insurance regulator IRDAI. 
 
The proposal for LIC’s initial public offering (IPO) was approved by the Cabinet Committee for Economic Affairs in July of last year. 

Read more News & Trends on India Frontline.

Tags