As per a note by GEPL Capital on the LIC IPO, LIC invests these funds across stocks and bonds. They own 4 per cent of all listed stocks in India and more government bonds than the RBI.
The government had in February planned to sell s 5 percent stake or 31.6 crore shares of the insurance behemoth and had filed draft papers with Sebi.
The issue size is expected to be worth Rs 21,000 crore, valuing the country's largest insurer at Rs 6 lakh crore.
The issue size is expected to be worth Rs 21,000 crore, valuing the country's largest insurer at Rs 6 lakh crore.
If the government misses the May 12 window available with it, LIC would have to file fresh papers with Sebi giving the results of December quarter and also update the embedded value.
The government was looking to sell 5 per cent stake in Life Insurance Corporation (LIC) this month, which could have fetched over Rs 60,000 crore to the exchequer. The IPO would have helped meet the curtailed disinvestment target of Rs 78,000 crore this fiscal.
Finance Minister Nirmala Sitharaman too had indicated review of the IPO in view of the evolving geopolitical situation. "Ideally, I would like to go ahead with it because we had planned it for some time based purely on Indian considerations," Sitharaman had said in an interview with the Hindu Business Line.
The decision in this regard was taken by the Union Cabinet, chaired by Prime Minister Narendra Modi. The government has approved listing of shares of LIC on the stock market through an IPO by part-sale of its stake in the insurer and raising fresh equity capital.
LIC's listing is crucial for the government to meet the lowered revenue estimates of Rs 78,000 crore for the current financial year. The government had an initial target of Rs 1.75 lakh crore from the disinvestment proceeds.
LIC IPO is crucial for meeting the ₹1.75-lakh crore disinvestment target set for the current financial year ended March 2022.
The government is banking on the listing of LIC IPO and BPCL strategic sales for meeting its disinvestment.
There are still some issues that need to be addressed with regard to the valuation of LIC, a senior official of one of the merchant bankers said.
LIC AE, AAO exam is scheduled to be held on October 31. Download hall ticket at licindia.in
Once the draft red herring prospectus (DRHP) is filed, merchant bankers will hold global and domestic road shows for investors by January, the official said.
Candidates who had appeared for the preliminary examination can check the result on the official website of LIC- licindia.in. The prelims was earlier conducted on August 28
The listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March).
According to the 7 pm provisional report, 56,10,116 vaccine doses have been administered on Monday, the ministry said.
Under the 'Special Revival Campaign', policies of specific eligible plans can be revived within five years from the date of the first unpaid premium, subject to certain terms and conditions, the insurer said in a release.
The LIC credit cardholders will apparently be able to gain access to a range of new benefits that have been termed, ‘the best in class'.
Up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
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