India’s biggest state-owned insurer Life Insurance Corporation (LIC), in its prospectus filed with market regulator SEBI, has said the net IPO (initial public offering) offer will constitute 4.99 per cent of the company’s post-offer paid-up share capital.
The IPO issue is expected to be the country’s largest public issue and will hit the capital market in March. As per the draft prospectus filed on February 13, LIC will offload 316.25 million shares (over 31 crore).
“The DRHP of LIC IPO has been filed today with the SEBI,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
The government plans to come out with the IPO, and the subsequent listing of Life Insurance Corporation (LIC) on bourses by March. A portion of the IPO will be reserved for anchor investors.
Also, up to 10 per cent of the LIC IPO issue size would be reserved for policyholders. Actuarial firm Milliman Advisors LLP India had worked out the embedded value of LIC, while Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
The IPO will be managed by Kotak Mahindra, Citi Bank, Axis Bank, Nomura, Bofa Securities, Goldman Sachs, ICICI Securities, JM Financial and JP Morgan.
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