The government is working on bringing out the DRHP (draft red-herring prospectus) for the IPO of Life Insurance Corporation (LIC) in January itself. LIC officials say that by March 2022, LIC is fully expected to enter the IPO market. The government will present the draft before the market regulator SEBI for its approval by the end of January.
An official related to the news said that at present the financial data of LIC for the July-September 2021 quarter is being finalized. At the same time, the process of fund division is also going on. “We are expected to present the draft paper related to the IPO with SEBI by the end of this month,” the official said. It is certain that LIC’s IPO will come by the end of the current financial year. The Cabinet Committee on Economic Affairs had approved the disinvestment of LIC in July last year.
This IPO of LIC is considered to be the biggest IPO of the country till date. State-owned LIC is the country’s largest insurance company and to bring its IPO, the government had appointed 10 merchant bankers in September last. These include Goldman Sachs, Citigroup and Nomura. Cyril Amarchand Mangaldas was nominated as legal advisor.
According to the report, if investors understand some of the proposed calculations released by the government, then LIC will join the league of India’s largest companies with a valuation of around Rs 15 lakh crore. At present, Reliance Industries Limited and Tata Consultancy Services are the two largest companies.
first published:Jan. 14, 2022, 5:38 p.m.