Government ready to launch LIC IPO in May 2022: Reports

6 Apr 2022 , 10:14 AM

According to the media reports, the Government is planning to launch the Life Insurance Corporation of India’s initial public offering early in May 2022 as it will be the biggest IPO for the Indian stock market history.

The Centre is hoping to launch the public issue before approvals for the IPO expire on May 12.

The Centre is in touch with bankers and financial advisors on the red herring prospectus (RHP). An RHP, also known as an offer document, is filed by a company with the capital markets regulator Securities and Exchange Board of India (SEBI) ahead of a public listing, as per media reports.

Also, the government is to pick up about Rs50,000 crore ($6.6 billion) from the public offering of state-owned Life Insurance Corporation, the media reports added.

The IPO is offer for sale (OFS) by the Government of India and there is no fresh issue of shares by LIC. The government holds a 100 per cent stake or over 632.49 crore shares in LIC and the face value of shares is Rs10 apiece.

Further, the Centre is considering pursuing around Rs50,000 crore ($6.6 billion) next month from the initial public offering of state-owned Life Insurance Corp., the media reports added .