MONEY

Government may sell 3.5% stake in LIC, IPO likely to fetch Rs 21,000 crore

The government is likely to sell a 3.5 per cent stake in Life Insurance Corporation of India (LIC) through an initial public offer (IPO). The IPO will hit the market in the first week of the next month, according to an official. 


The issue size is expected to be worth Rs 21,000 crore, valuing the country’s largest insurer at Rs 6 lakh crore.


LIC is likely to file the red herring prospectus with market regulator SEBI by Wednesday. 


In February, LIC had filed draft papers with the SEBI, wherein it had said that the government would sell 5 per cent stake or 31.6 crore shares in the State-run insurer.


However, the IPO plans faced headwinds due to the ongoing volatility in stock markets due to Russia-Ukraine war, forcing the government to cut the issue size to 3.5 per cent. 


Reservations for policyholders and employees, and discounts, issue dates and issue price would be known by Wednesday, the official added.

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