Market regulator Sebi has approved the LIC IPO, a most awaited IPO by India. The approval was given within 22 days of filing. As stated in the report, Sebi has issued an observation letter for the same.
Life Insurance Corporation of India has filed in February its draft papers with market regulator Sebi. The issue would be an offer for sale of 31,62,49,885 equity shares by the government holding a 100 percent stake in the insurance behemoth. 50 percent of the total net issue would be reserved for qualified institutional buyers (QIBs), while 15 percent of shares are allocated for non-institutional buyers. The retail portion has been finalized at 35 percent of the offer.
According to reports, the government may postpone the mega offering to the next financial year, starting April 1, for the reasons, of higher volatility on the count of ongoing geopolitical tension between Russia and Ukraine. It was expected that government will sell 5 percent in Life Insurance Corporation in March, which would have fetched over Rs 60,000 crore to the exchequer.
