DIPAM to meet Investment Bankers on LIC IPO

The government-appointed intermediary, the Department of Investment and Public Assets (DIPAM) conducts market assessments and found out that the current situation leads to the listing of LIC, India's largest insurance company to attract investment bankers for its IPO.  

The government expected to raise Rs 63,000 crore by selling a 5% stake in a life insurance company to meet its curtailed disinvestment target of Rs 78,000 crore this year.

The government of India is planning to launch the IPO of Life Insurance Corporation by May. The IPO was supposed to take place sooner but was delayed due to the Russia-Ukraine war which kept stock markets highly volatile. 

The government must initiate an IPO of LIC by May 12 without submitting a new filing to market regulator SEBI, and if it missed the available May 12 window, LIC will need to submit a new filing to SEBI giving the submission of the quarterly results for the month to update the embedded value.