LIC IPO Set To Raise $8 Billion, By Selling 5% Of Government's Stake: What Should You Know

Public insurance corporation, LIC is ready to open IPO on March 11, this year. The state-run corporation will be India's biggest ever public offering of shares at US$8 billion, according to Reuters sources. The LIC IPO is anticipated to receive regulatory approval, and after that, an indicative marketing price band will be decided. LIC is set to sell 5% of the Indian government's stake, which is 31.6 crore shares.

LIC's employees and policyholders will get a discount over the floor price, to obtain the IPO. The policyholders must update the PAN on the LIC portal, and they should have a Demat account.

According to the available report by English daily the Economics Times, "The government is rushing to complete the IPO by the end of March to meet its 2021/22 fiscal deficit target of 6.4% of gross domestic product (GDP), which is contingent on it raising around Rs. 60,000 crore ($8.03 billion) from the issue. New Delhi sharply trimmed its divestment and privatization plans for the fiscal year that ends on March 31 to Rs. 78,000 crore from Rs. 1.75 lakh crore. So far it has raised just Rs. 12,000 crore from divesting stakes in state-run companies as it failed to privatize, including run refiner Bharat Petroleum Corp Ltd and two banks."

However, the LIC IPO launch schedule date can change further, as the public insurance corporation did not announce it officially yet.