Government may bring LIC IPO in two installments
The government may consider a plan to bring the country’s largest IPO in two installments. The IPO related to Life Insurance Company (LIC) can come before the month of March of the coming year.
New Delhi. LIC is considered to be one of the largest life insurance companies in India, in which the government holds 100 percent stake. Now it is heard that the government is going to bring an initial public offering (IPO) of LIC. Let us tell you that the issue of LIC is very important for the government for disinvestment, so the government wants it to be brought in this financial year.
Read More: Process to sell government stake in LIC begins
IPO coming soon
It is being said to be India’s largest public issue, information about opening of about 1 crore new demat accounts is coming out during LIC’s IPO. The government had set a disinvestment target of Rs 1.75 lakh crore in the fiscal year 2021 2022, but so far the Indian government has been able to raise only Rs 7,645,70 crore from disinvestment. In such a situation, this IPO is going to prove to be a profitable deal for the government.
Read More: LIC’s IPO to be released, Central Government approved
IPO will come in two installments, 5-6 percent stake can be sold in the first installment
According to media reports, the government is going to bring this IPO in two installments, 10 percent of which is expected to be sold. There are speculations that the government may sell 5 to 6 percent stake in the first installment. After this, the government can bring FPO (Follow-On Public Offering) to sell the same stake.
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One and a half lakh crore rupees may have to be raised from the market
The government has started the process of its evaluation to bring LIC’s IPO. Its valuation i.e. valuation can be between 12 to 15 lakhs. In such a situation, if the government sells 10 percent stake, then it may have to lift close to Rs 1.5 lakh crore from the market. LIC has started the process of IPO allotment for the policyholders and the company has also started building the data base of eligible policyholders, the company has more than 29 crore policyholders.
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However, it has not been confirmed yet as to what percentage of stake the government is going to sell in LIC IPO. Let us tell you that this IPO can come by the end of December quarter or in the March quarter next year.
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