Rechercher dans ce blog

Tuesday, April 26, 2022

LIC IPO price band set at Rs 902-949, discount of Rs 60 for policyholders: Govt sources - Moneycontrol

The price band for the initial public offering of Life Insurance Corporation of India (LIC) has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, CNBC TV18 learnt from government sources on April 26.

For retail and employees, the discount will be of Rs 40, the persons privy to the development told the news channel.

The much-awaited IPO of the state-run insurance behemoth is set to open on May 4, the sources said a day earlier, adding that the issue is likely to close on May 9.

The anchor book for the offer is expected to open on May 2, they added, further noting that there will be no greenshoe option in the IPO.

The Securities and Exchange Board of India on April 25 gave its nod to the updated draft red herring prospectus, which lists a 3.5 percent stake sale instead of 5 percent as mentioned in the previous draft papers, CNBC TV18 had reported.

The revised DRHP was submitted before the market regulator last week. The government, which wholly owns the insurance behemoth, plans to raise an amount of Rs 21,000 crore by selling around 22 crore shares which is equivalent to a 3.5 percent stake.

The red herring prospectus will be submitted before Sebi by April 27, it added.

Also Read | With LIC IPO back on track, it’s crucial to strike the right stock price

By seeking Rs 21,000 crore for the revised holding on the block, the government is targeting a valuation of Rs 6 trillion for the insurer.

The IPO, notably, holds the key to the Centre's plan to meet its disinvestment targets. The government has pegged divestment receipts at Rs 65,000 crore for 2022-23, up from Rs 13,531 crore last fiscal.

The previous draft papers related to the IPO was filed with the Sebi in February, when the government had stated that it plans to sell 31.6 crore shares in a 5 percent stake sale in the state-run insurer.

The IPO plans, however, were deferred as the market faced volatility following the Russian invasion of Ukraine.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)


LIC IPO price band set at Rs 902-949, discount of Rs 60 for policyholders: Govt sources - Moneycontrol
Read More

No comments:

Post a Comment

Govt’s fiscal consolidation plan to aid private sector, boost capex revival - Moneycontrol

Finance Minister Nirmala Sitharaman The 2024 Interim budget is based on the robust framework of “Viksit Bharat by 2047.” Driving this gr...