The initial selling of Mega’s initial shares from Life Insurance Corp. (LIC) has been announced and this problem will be opened on May 4, according to the PTI report. Offers for the IPO will take place until May 9 The IPO, which through which the government will sell 3.5% of the shares in the state-owned life insurance company (LIC), will take ₹ 21,000 crore to the Minister of Finance.
The stock sales of 3.5% will take a much lower than ₹ 50,000 crore which is estimated before Russia invades Ukraine.IPO LIC value on ₹ 6 lakh crore. The government’s estimate had called for an insurance company worth around ₹ 17 lakh crore.
In accordance with the norm, the company with more than ₹ 1 lakh crore must sell a 5% stake in the IPO. The government has also submitted a letter to Sebi who is looking for liberation from the norm, the PTI report said.Although the government has reduced the size of LIC IPO, sales will still be the biggest India, surpassing the One 97 Communications Ltd. list, which collected around ₹ 18.300 crore in November last year.Anchor investors were reluctant to commit because the war eroded equity demand, Bloomberg reported earlier, with foreign funds attracted more than $ 16 billion from India shares this year.
The government in February has planned to sell a 5% stake in LIC. However, the ongoing market volatility because the Russian-Ukrainian war made him lower the size of the IPO. LIC dominates the Indian insurance sector with more than 280 million policies. It is the fifth largest global insurance company in terms of gathering insurance premiums in 2020, the last year of statistics available.
LIC IPO will contribute greatly to the results of the release of budgeted investments in the current fiscal. The government has set the receipt of being discredible on ₹ 65,000 crore in the current financial year, up from ₹ 13,531 crore which was enhanced the last fiscal.