Lic Ipo | Key things to know about the state-owned insurance giant

The government-run Life Insurance Corporation of India (LIC) today filed a draft Red Herring Prospectus (DRHP) with SEBI for its initial public offering (IPO), which is expected to hit the capital market in March .

There are currently 24 life insurance companies in India with LIC being the only public player. The sponsor of the company is the President of India acting through the Ministry of Finance, Government of India.

The government owns 100% of the capital of LIC, whose total capital is about 632 crores of shares.

The government plans to sell 31.6 crores of shares, representing 5% of the capital, through a sale offer.

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The IPO is entirely an offer for sale by the Indian government and no new issuance of shares by LIC.

The employee reservation share will not exceed 5% of the post-offer share capital, while the policyholder reservation share will not exceed 10% of the offer size.

Up to 60% of the qualified institutional buyers share will be allocated to anchor investors, while one-third of the anchor investor share will be reserved for domestic mutual funds.

The intrinsic value of the LIC as of September 30, 2021 is Rs 5.4 trillion.

LIC’s shares will be listed on the stock exchange after the successful IPO.

Objects of the offer:

The purpose of the Offer is to realize the benefits of listing the equity shares on the Stock Exchange and to effect the Offer to Sell by the Selling Shareholder. The Selling Shareholder (President of India) will be entitled to all of the proceeds of the Offering after deduction of the costs of the Offering and applicable taxes.

Lead responsible for maintaining the books of the show:

Kotak Mahindra Capital, Axis Capital, BofA Securities, Citigroup Global Markets India, Nomura Financial Advisory and Securities, Goldman Sachs (India) Securities, ICICI Securities, JM Financial, JP Morgan India and SBI Capital Markets.


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