New Delhi, First Published Apr 21, 2022, 3:17 PM IST
The federal government is expected to announce a new date within a week for when LIC will hold an IPO, a federal official said.
5 per cent stake
The central government is to sell 5% stake in LIC through an IPO. LIC has submitted a draft report to the Securities and Exchange Board of India (SEBI). LIC may sell shares on March 11.
Rs 65,000 crore
The central government plans to raise Rs 65,000 crore to Rs 75,000 crore by selling this 5% stake. 31.60 crore shares have been sold through this IPO.
This includes special discounts for policyholders and employees of LIC. If policyholders want to buy shares, they must have a PAN number attached to the policy. The deadline for this is over.
May 12
SEBI, the market regulator, has given the go-ahead to the LIC to issue an IPO till May 12. The shares must be issued within this. Otherwise the Central Government will have to file the issue of new shares with the new SEBI. Therefore, it has been reported that LIC will have an IPO by May 12. It is expected that the central government will take a new decision on the IPO issue within a week.
Tough results
The official, who did not want to be named, said: Foreign investors will buy shares based on international factors.
Results in a week
Therefore, the Federal Government will announce the key decision on the LIC IPO sale date and time within a week. The federal government has not made any decision on the IPO price. If the stock value goes up in the decision made during the listing, it is profitable for the investors. If the IPO release is in August or September, LIC will apply to the Central Government SEBI anew, along with the quarterly results. However, the central government will take a decision by May 12. Stock sales are also unlikely to be above 5 percent. He said
Shares of LIC stood at Rs 5.40 lakh crore as on September 30, 2021. If calculated now it will be 2 to 3 times more than that. The central government has decided to raise Rs 65,000 crore by issuing 5 per cent or 31.60 crore shares of its 100 per cent stake.
Last Updated Apr 21, 2022, 3:17 PM IST