Life Insurance Corporation (LIC) is set to file the Draft Red Herring Prospectus (DRHP) for its IPO (Initial Public Offering). ET Now has learned the insurer may file DRHP with Sebi anytime as necessary preparations have been made. LIC board met on Friday to give in-principle approval to IPO, sources close to the development told ET Now.
“We are ready to file DRHP, it may happen anytime now,” a person involved with the proceedings of IPO told ET Now.
ET Now had earlier reported that government may look to sell 5% stake in LIC. The embedded value (EV) of IPO is pegged over Rs 5 lakh crore. Sources say a 5% stake sale may fetch Rs 65,000-75,000 crore to the government. The public issue may help the government reach its revised divestment target of Rs 78,000 crore, cut down from the initial target of Rs 1.75 lakh crore. The government expects to fulfill the majority of the portion of its divestment target from LIC IPO. Therefore, efforts have been made to expedite the filing of IPO in the current fiscal itself (FY22).
Briefing media after the Budget 2022-23, Finance Minister Sitharaman had said, “LIC in all probability is going through this year.” I have indicated clearly that it will happen, she added.
ET Now had also reported that LIC has reached out to global players, fund houses for being anchor investors in the upcoming IPO. The insurer was in talks with 25-30 anchor investors for investing in the company. The names included Canada Pension Plan Investment Board, BlackRock Global Funds, Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Morgan Stanley, Nomura and SBI MF among others.
