Securities Exchange Board of India (SEBI) has given its approval to LIC Draft Red Herring Prospectus (DRHP) within 22 days of filing.
LIC had filed for its DRHP with the SEBI on February 13, 2022. As per the draft papers, the company will sell over 31 crore shares via an offer-for-sale (OFS). The government will sell 5 per cent of its stake in the company to the public. The retail investors can apply for 35 per cent of the total shares. On the other hand, Qualified institutional buyers (QIBs) can apply for a 50 per cent portion out of the remaining. According to a DRHP, the issue will also have special reservations for employees of the company and policyholders.
However, it is not certain when indeed the IPO will come because the government expressed its reservations last week regarding the date of the IPO amid Russia Ukraine tensions. Earlier, the government had planned to list the company on the stock exchange by March 31, 2022. Now, reports suggest that it might be delayed by at least a month.
LIC IPO could fetch the government around Rs 60,000 crore. The proceedings of the issue, according to DRHP, will go to the government. It was supposed to help the government in meeting its disinvestment target of Rs 78,000 crore for the year ending March 31, 2022.