New Delhi: Investors are eagerly waiting for the Mega IPO of Life Insurance Corporation of India, the country’s largest insurance company. Once again on Wednesday, the government has made it clear that after the approval of the market regulator SEBI, LIC’s IPO can come in March. In her Budget 2022-23 speech on Tuesday, Finance Minister Nirmala Sitharaman had said that soon the government is going to issue LIC’s IPO.
Part of the issue reserved for anchor investors
The government can file a draft of documents for LIC’s IPO before the Securities and Exchange Board of India (SEBI) by next week. Giving this information on Wednesday, Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said that a part of the issue may be reserved for anchor investors.
The government will submit documents
Pandey said that the approval of the insurance regulator is awaited. After this, a draft of documents detailing the size of the share sale will be filed. He said that after getting the approval of SEBI, LIC’s IPO can come into the market by March.
There will be a change in FDI policy for disinvestment
On the other hand, the Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union Cabinet for changes in the FDI policy for smooth disinvestment of LIC. Given this information, DPIIT Secretary Anurag Jain said that the Inter-Ministerial Consultation on the matter is in the final stages.
Awaiting IRDA approval
Pandey said that the embedded value of LIC has arrived and now it is awaiting the approval of the Insurance Regulatory and Development Authority (IRDA). He said, “Draft documents (DRHP) for LIC’s IPO will be filed between 7 to 10 days. Informally we have been discussing various issues with SEBI. The details of the IPO will be in DRHP.
