Govt to sell 5% LIC stake through IPO

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Govt, LIC To Divest 60.72% Stake In IDBI Bank
Govt, LIC To Divest 60.72% Stake In IDBI Bank

The Central government on Sunday filed the draft papers with markets regulators, SEBI (Securities and Exchange Board of India), for Life Insurance Corporation’s (LIC) initial public offer (IPO), through which it hopes to sell 5 per cent equity stake.

The public offer is expected to hit the capital market in March.

The government will sell over 31 crore equity shares of LIC, according to the draft red herring prospectus (DRHP) filed with the markets regulator.

“The DRHP of LIC IPO has been filed today with the SEBI,” department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey tweeted.

Government aims to come out with the IPO and subsequent listing of Life Insurance Corporation (LIC) on bourses by March.

A portion of the IPO would be reserved for anchor investors. Also, up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.

The listing also comes against the backdrop of foreign investors pulling out funds from the domestic market just as the government seeks to meet a sharply trimmed divestment target for the current financial year.

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