There’s numerous curiosity and buzz available in the market for the upcoming preliminary public providing of Life Insurance coverage Company of India (LIC), Finance Minister Nirmala Sitharaman stated on Tuesday.
He additionally indicated that the preliminary public providing (IPO) will happen within the present monetary 12 months.
On February 13, the state-owned insurance coverage firm filed draft papers with capital markets regulator SEBI on the market of 5 per cent stake by the federal government for an estimated Rs 63,000 crore.
“Now that DRHP (for LIC IPO) is out, there’s a buzz and numerous curiosity available in the market. I’m glad the best way it has been framed, the place shareholders even have a job. The best way it’s framed Gaya has generated numerous curiosity and we’ll go forward with it,” Sitharaman informed reporters.
Requested whether or not the IPO will come on this monetary 12 months, Sitharaman stated, “DRHP is just not issued two years again. Is it?”
DRHP refers back to the draft purple herring prospectus.
LIC’s IPO is solely a suggestion on the market (OFS), by means of which the Authorities of India will promote its 5 per cent stake by promoting 31.63 crore shares.
Workers and coverage holders of the insurance coverage large will get a reduction on the ground worth.
On Monday, LIC Chairman MR Kumar stated the insurance coverage large is watching the geopolitical scenario fastidiously although it desires to checklist the IPO in March.
When requested concerning the impression of the evolving geopolitical scenario on the upcoming IPO, Kumar stated, “We’re watching the scenario carefully and punctiliously, however we’re very eager to checklist in March.”
In the meantime, on Tuesday, LIC clarified that subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) will not be eligible for shares at a reduced worth within the IPO.
“This can be a group insurance coverage product and (PMJJBY policyholders) will not be eligible,” LIC stated in an announcement.
The clarification got here a day after Kumar stated PMJJBY clients are additionally eligible for the advantages accessible to policyholders. Nonetheless, LIC stated within the assertion that it was “inadvertently talked about”.
As per the DRHP filed final week, the utmost bid quantity beneath the policyholder reservation portion by an eligible policyholder shall not exceed Rs 2,00,000 (internet of policyholder low cost).
To facilitate the IPO, the share capital of LIC was elevated from Rs 100 crore to Rs 6,325 crore throughout September final 12 months.
Final month, LIC reported a revenue after tax of Rs 1,437 crore for the primary half of FY 2021-22, as towards Rs 6.14 crore within the year-ago interval.
(Solely the title and picture of this report could have been reworked by Enterprise Commonplace employees; the remainder of the content material is generated robotically from a syndicated feed.)