LIC IPO update: The first public offer, or IPO, of the Life Insurance Corporation (LIC) of India will be launched very soon. Operations for this are in full swing and one can only wait for the insurer to announce the date when the IPO will open. Amid all the paperwork and other similar processes related to the LIC’s IPO, Finance Minister Nirmala Sitharaman is assessing its progress. LIC’s IPO, touted as the largest ever in the country’s history, is expected to hit the market in March, the government has said. However, the exact date or price range of the issue has not yet been announced by the government.
Here are the key things we know so far about LIC’s IPO that will launch in March this year:
– The Union’s finance minister on Friday discussed progress on the planned divestment of the country’s largest insurer, LIC. “The Union Minister of Finance Smt. @nsitharaman reviewed the progress of the LIC IPO in New Delhi today in the presence of @SecyDIPAM; Secretary @DFS_India and senior officials @LICIndiaForever and @FinMinIndia through VC,” the Ministry of Finance tweeted.
– According to a report by the Times of India, the IPO of the LIC is expected to submit its draft documents to the Sebi in the third week of January. This is in line with the government’s claims to have the IPO by the end of fiscal year 2022. LIC IPO is crucial in meeting the Rs 1.75-lakh crore divestment target set for the current fiscal (April-March). So far, this fiscal amount of Rs 9,330 crore has been mopped up due to the divestment of the PSU. The government is in the process of deciding the size of the government stake to be divested through the IPO.
– LIC shares will be distributed to policyholders at a discount, the company said. It has also urged policyholders to open a demat account and link Aadhaar to LIC to buy shares during the public offer – part of which will be reserved exclusively for them. In a December 2 notice, the insurance company said: “To participate in such a public offering, policyholders must ensure that their PAN records are updated in company records. Furthermore, registering for a public offering in India is possible if you have a valid demat account. Accordingly, policyholders must ensure that they have a valid demat account.”
– The national government has refuted claims about the IPO of the LIC. The Center last month dismissed media speculation claiming that the government is unlikely to come forward with the LIC’s IPO in the current fiscal year ending in March 2022. of course, and said the reports were not correct.
– The government has shortlisted Cyril Amarchand Mangaldas as legal adviser to LIC’s upcoming mega-IPO. In addition to the legal counsel, the government has appointed ten leading international and Indian investment banks to manage India’s first public offer from Life Insurance Corporation (LIC). It has also selected Concept Communications as its advertising agency and Kfintech as its share transfer registrar and agent for the IPO. The Department of Investment and Public Asset Management said in a letter it has appointed Goldman Sachs, JP Morgan, Citigroup, Nomura, Bank of America Securities, JM Financial, SBI Caps, Kotak Mahindra Capital, ICICI Securities and Axis Capital to initiate the IPO. to manage.
(With PTI inputs)
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