LIC IPO LIC board approves reduction in IPO size: Report
New Delhi: The LIC board has approved a reduction in its initial public offering (IPO) issue size from 5 percent to 3.5 percent, media reports said.
The government will now sell only 3.5 percent of its stake in LIC for Rs 21,000 crore, subject to the approval of the stock market regulator Securities and Exchange Board of India (SEBI).
The government had proposed the sale of its 5 percent equity in the draft red herring prospectus (DRHP). LIC will probably be valued at some Rs 6 lakh crore.
"Investors have become very risk-averse in the last few months. After roadshows, we realised there was no point in putting a high valuation upfront. A higher valuation can be discovered post the listing. After all, the government will still hold nearly 95 percent of the issue," news agency Reuters reported on Friday, quoting an unnamed source.
Despite the dent in value, it will still be the biggest in India's IPO history. it will still be the biggest in India's IPO history.
The LIC IPO is likely to be launched in the first week of May, investment banking sources told Reuters.
The government had wanted to complete the LIC IPO last financial year that ended on March 31, 2022, but had to delay due to market uncertainties induced by Russia's invasion of Ukraine.
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