State-owned insurance behemoth Life Insurance Corporation of India (LIC) has received market regulator Securities and Exchange Board of India’s (SEBI) nod ahead to raise funds through an initial public offering (IPO), according to several media reports.
The government is selling 31 crore equity shares through the IPO as per the draft red herring prospectus (DRHP) while 10% of the LIC IPO issue size is reserved for policyholders. The IPO is special for the 29 crore policyholders of the life insurer, who would be getting a preference on the shares.
The final approval of the IPO comes after 22 days of filing the draft red herring prospectus.
The government will sell 5% of its stake in the company to the public.
However, the date of the IPO launch is yet to be determined as the government would be having second thoughts on its launch this month. Not only Indian but entire global markets are under pressure and extremely volatile since the last few weeks.