SEBI nods LIC's updated DRHP for IPO: Reports

21 Mar 2022 , 06:24 PM

The Securities and Exchange Board of India (SEBI) has approved LIC’s updated draft red herring prospectus (DRHP) for the Initial Public Offering (IPO), as per media reports.

As experts say that since the LIC IPO is not expected in this fiscal year, the DRHP will need to be updated again.

Life Insurance Corporation (LIC) had filed an updated DRHP for the IPO with the Securities and Exchange Board of India (SEBI), a government official told CNBC-TV18. The updated DRHP for the IPO is based on LIC’s December financials, the official said.

In March, LIC received SEBI’s go-ahead to raise funds through an initial share sale and the IPO launch was originally planned for March, but the Russia-Ukraine crisis derailed the plans as stock markets have been highly volatile.

It has been reported that the LIC is likely to issue its IPO in April.

LIC had filed its IPO papers with SEBI in February 2022.  As per the DRHP for the IPO in February, LIC’s offer is entirely an offer for sale (OFS) of 316,249,885 shares by the shareholder, President of India, acting through the Ministry of Finance, Government of India. This means the government will sell a 5 per cent stake via the IPO.