LIC receives SEBI nod for IPO to sell 31 Crore Shares

Life Insurance Corporation (LIC) of India has received approval from the market regulator Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The final approval from SEBI comes after 22 days of filing the DRHP. The government is planning to sell 5% of its stake in the company to the public through this IPO. 

The government plans to sell 31 million equity shares through the IPO, as per the DRHP with 10% of  LIC IPO issuance reserved for policyholders. IPOs are special for the 29 crore policyholders of life insurers, who are getting preferences on the shares.

However, the government has yet not confirm the date of the IPO due to the pressure and extreme violation situation for the last few weeks. Markets witnessed one of the huge crashes due to the ongoing was between Russia and Ukraine. The market situation has hit the commodity markets and triggered inflation all around the world.

It is likely that the government will postpone the IPO for now, due to such market conditions. Reportedly, the LIC IPO is expected to fetch Rs 60,000 crore. It is assumed that LIC can be among the most valued Indian companies like Reliance Industries, TCS, Infosys and HDFC Bank.