Investors have been waiting for a long time for LIC’s IPO amid the Russia-Ukraine dispute. Markets regulator SEBI has approved LIC IPO in just 22 days. Usually it takes 75 days.
LIC IPO: There is very good news for the investors who have been waiting for LIC’s IPO for a long time. Now the speculations about the arrival of LIC IPO have almost come to an end.
Market regulator SEBI has approved LIC IPO in just 22 days. It usually takes 75 days to get approved. It is being told that SEBI has issued an observation letter for this.
LIC IPO unlikely to be postponed
Let us tell you that before this SEBI had not approved any IPO so soon. Therefore, it is expected that the EIPO is no longer going to be postponed due to the Russia-Ukraine War.
Actually, there is a sell-off environment in the market due to the Russia-Ukraine war, due to which there was talk of postponing LIC IPO till next year. The government has set a target of raising Rs 60,000 crore from this IPO.
The draft was sent in February
It is worth noting that LIC had recently filed draft papers with the market regulator in February. According to this draft, it is proposed to sell 31,62,49,885 equity shares out of a total of 632 crore shares of LIC. Of this, 50 percent will be reserved for Qualified Institutional Buyers (QIBs), while it will be 15 percent for non-institutional buyers.
Big investors have increased concern
Due to the sell-off in the market, the big investment banks putting money in LIC’s IPO are pressurizing the government to postpone the listing. He says that due to the Russo-Ukraine war, there is a lot of volatility in the market right now. Its effect can also be seen on LIC’s IPO.
valid for 12 months
Now after LIC IPO is approved by SEBI, this IPO is valid for a period of 12 months from the date of approval.
In the cabinet meeting, a big decision was taken regarding LIC IPO. In this, Foreign Direct Investment (FDIE) was allowed up to 20 percent under the automatic route. After this decision,
the way for foreign investment has been opened in the proposed IPO of LI. But, in view of the declining environment of the market, foreign investors have started withdrawing their money from the market.
