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As a result of continuing volatility on the stock market and Russia-Ukraine tension, the government Life Insurance Corporation of India (LIC) is bringing an IPO. The government will not make any modifications to its IPO plan, according to Nirmala Sitharaman.

Ms. Sitharaman pointed out that the LIC IPO is receiving a lot of market enthusiasm and we will proceed. Moreover, the global situation has an impact on the market as well. However, given the current volatility, is it possible to postpone the IPO date? As the Finance Minister stated, investors are eagerly awaiting this and we are ready to take advantage of this.

Refuses to speak about NSE scam

In a press conference, asked about the controversies surrounding former NSE MD & CEO Chitra Ramakrishna, he said that the investigation will be handled by the market regulator SEBI, and when they do not have complete details, she cannot comment.

GST compensation was also a concern for the states

When it comes to states’ demands for more money to make up for GST collections being short, Sitharaman explained that there is no difference. To compensate for the decline in 2020, the states have been given separate loans in order to compensate for the GST Council’s decision. Furthermore, the period of recovery is done in the form of cess was also extended.

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SEBI, the market regulator, has accepted the central government’s application for the LIC IPO. Life Insurance Corporation is expected to sell 5 percent of its shares. There will be a discount of 10 percent given to policyholders in LIC’s initial public offering. However, the record date will be February 13, and the PAN card policy will be updated by February 28.

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Policyholders are allowed a maximum of Rs 2 lakh. LIC India’s IPO has a share size of 31,62,49,885, with a retail quota of 35 percent. LIC’s IPO has been in the making for some time, and in order to make it a reality, the government has also sought advice from specialist companies.

As reported by sources, LIC’s board of directors approved the IPO. If SEBI approves LIC’s IPO, it could take place within a few days. The IPO may hit the capital market in March, according to sources. The government plans to sell about 31 crore equity shares in the draft it filed with SEBI.

The IPO is 100% OFS by GOI and no fresh issue of shares by LIC

For filing valuation about 31.6 cr shares are on offer representing 5% equity. pic.twitter.com/UizbeiPloD
— Secretary, DIPAM (@SecyDIPAM) February 13, 2022

Tuhin Kanta Pandey, Director, Department of Investments and Public Asset Management (DIPAM), tweeted that the DRHP for LIC’s IPO had been submitted to SEBI. Life Insurance Corporation (LIC) is expected to be listed on the stock exchanges by March. Anchor investors will receive a portion of the IPO. LIC’s IPO issue will reserve up to 10 percent for policyholders.

According to the source, preparations have been completed, and the DRHP could be filed as soon as next week. An IPO by LIC is important for the government amidst an estimated shortfall of Rs 78 thousand crores in government disinvestment targets for the current fiscal year. So far, the government has raised around Rs 12,000 crore by privatizing Air India and selling its stakes in other PSUs. LIC held a 64.1% share of the domestic market in 2020. LIC ranks third in the world when it comes to life insurance premiums, according to Crisil.

Prior to 2000, LIC’s market share was 100 percent, but in 2016, it had decreased to 71.8 percent. LIC’s market share further declined to 64.1% in 2020. SBI Life’s market share in 2016 was just 5%, and its share in 2020 is projected to be 8%.

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Market volatility won’t cause the government to panic, Sitharaman made a big statement on LIC IPO

LIC prepares for its historic IPO, LIC customers will also get golden opportunity