NEW DELHI: The much awaited initial public offering (IPO) of Life Insurance Corporation (LIC) of India is likely to open on May 4, news agency Reuters reported quoting sources.
The issue is expected to be open for 4 days till May 9.
Valued at Rs 6 lakh crore, the IPO has been widely anticipated by investors.
The Centre is also likely to cut the size of the IPO to 3.5 per cent to raise around Rs 21,000 crore from the issue.
In February, the government had planned to sell 5 per cent stake in LIC. However, the ongoing market volatility due to the Russia-Ukraine war has made it lower the IPO size.
The draft papers filed then had mentioned that the government will sell 5 per cent stake or 31.6 crore shares in the state-run insurer.
As per norms set by the Securities and Exchange Board of India (Sebi), companies with valuation over Rs 1 lakh crore have to sell 5 per cent stake in IPO.
LIC's embedded value, which is a measure of the consolidated shareholders value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
Based on investor feedback, the market value of government-owned LIC has been pegged at 1.1 times its embedded value or Rs 6 lakh crore.
(With inputs from agencies)
