LIC IPO May be Delayed by a Few Days

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LIC IPO May be Delayed by a Few Days
16 Mar 2022
7 min read

News Synopsis

A senior Finance Ministry official has said that the mega IPO of the Life Insurance Corporation of India can be delayed by a few days and will not be pushed back significantly if market conditions improve and remain stable.

The official said that the IPO will definitely happen, if not in March then in April. He said that the corporation is keeping a watch on the market and track of the volatility. It hopes to execute the issue as soon as possible. 

If this deadline is not met, the valuation will need to be amended and a new draft red herring prospectus (DRHP) will be submitted to the Securities and Exchange Commission of India (SEBI) to update the financial results.

LIC has got approval for IPO from the market regulator, SEBI. The government has set a March deadline for the IPO. The Finance Minister, Nirmala Sitaraman has also said that earlier this month that she would like to go ahead with the LIC IPO as planned, and that she would not mind re-looking it given the global situation. LIC is the largest insurance company in India with more than 289 million policies and a dominant 60% plus market.

TWN Special