LIC to launch India’s biggest IPO in stock market; special discount likely for policyholders, employees
Considering the amount the government wants to raise from the market, it would be the biggest IPO in the Indian stock market’s history.
New Delhi: Life Insurance Corporation of India (LIC) has submitted a Draft Red Herring Prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to lunch an IPO or initial public offering.
Under the IPO, LIC will offer more than 31.6 crore shares It values five per cent of the government stake.
The launch of the IPO will take place in March this year. It is reported that LIC’s employees and policyholders would be offered discounts.
Through the IPO, the government is likely to get around Rs 63,000 crore. Notably, the market value of LIC is expected to be around Rs 16 lakh crore.
Currently, the government holds a 100% stake, representing 632.49 crore shares. The face value of each share is Rs 10.
Largest IPO in Indian stock market history
Considering the amount the government wants to raise from the market, it would be the biggest IPO in the Indian stock market’s history. So far, Paytm is known for garnering the amount of Rs 18,300 crore.
This is followed by Coal India in 2010, accumulating Rs 15,500 crore, and Mukesh Ambani-led Reliance Power, raising Rs 11,700 crore in 2008.
Benefits for employees and policyholders
It is good news for employees and policyholders as they will be offered discounts in the public offering. However, the exact percentage is yet to be revealed by the insurance giant.
Under the norms of the government, 5 per cent of IPO size can be reserved for employees, while 10 per cent for policyholders.
It is noted that policyholders must link their Permanent Account Numbers (PAN) with LIC for investment.