There is great information for the people who are waiting for LIC IPO. If seen in the recent meeting of the Board of Life Insurance Corporation of India (LIC), it has been agreed to reduce the size of LIC IPO.
According to sources, the size of the IPO has been changed by LIC. Earlier the government is going to sell 5% stake but now the government will start having 3.5% stake for the IPO.
According to the information, the valuation of LIC has been increased to Rs 6 lakh crore regarding the IPO. That is, according to the new size, the size of the IPO is going to be Rs 21,000 crore. Although an official has informed that the demand has started getting good in the market, then the government is going to increase it by 5% going forward.
IPAO continues in the first week of May
It is worth noting that LIC may have reduced the size of the IPO, but LIC has allowed the sale of up to 5% stake in the DRHP to be deposited with SEBI for the IPO. Apart from this, he has started getting time till May 12 to list the company. Therefore, if the government is seen, there is a need to bring an IPO by the first week of May in any case.
Actually, talking about LIC IPO, the government has made its target. LIC had filed a draft issue document with the Securities and Exchange Board of India (SEBI) in February. At that time it was sized by LIC. LIC had informed that the government is going to sell 5 per cent stake in it i.e. 316 crore shares.
Why is the government going to reduce the valuation
According to the information received by experts, after looking at the market situation, the government is going to decide to take these steps to attract investors. If seen on this decision of the government, then the chances of listing gains for investors will start increasing. FPI in the Indian market has also started declining.
