Preparation of LIC IPO: Government may decide this week, this big information came out
There is good news for the people waiting for LIC's IPO. In fact, in a report, quoting government sources, it was said that the central government can announce the date of presenting the country's biggest IPO by the end of this week.
Decision will be taken after the meetings
A government official was quoted in the report as saying that we are preparing to present the LIC IPO within the stipulated time frame by the end of this week and will take a final decision in this regard after a few meetings. The official said that while the government is fully confident about the prospects of the issue, it is also cautious about the market conditions and investor sentiments.
India's biggest IPO
LIC IPO will be India's biggest IPO ever. According to the reports, the government is going to sell its five percent stake in LIC through IPO. Under this, 31.6 crore shares will be issued. In this case, the embedded value of the company can be Rs 5.4 lakh crore. 35 per cent of the IPO will be reserved for retail investors. In such a situation, policyholders can bid for shares up to a maximum of Rs 4 lakh.
Preparing to attract investors
According to the report, the valuation of the country's largest insurance company can be reduced by about 30 percent. The government is going to do this with the aim of increasing the attractiveness of LIC's IPO among investors. The government now wants to make the valuation of LIC around Rs 11 lakh crore. Earlier its value was fixed at Rs 16 lakh crore.
So much for policyholders
If reports are to be believed, 10 percent of the LIC IPO will be reserved for policyholders and 5 percent for employees. Apart from this, the way for foreign direct investment of 20 percent in IPO has also been opened. There will be no lock-in period for the policyholders after investing in the IPO. He can easily sell the shares on the day of listing.