INSUBCONTINENT EXCLUSIVE:
SEBI granted its approval for the LIC IPO last week.New Delhi: The initial public offering (IPO) of India's biggest insurer Life Insurance
Corporation of India (LIC) seems unlikely in this financial year 2021-22, sources told TheIndianSubcontinent
The government may delay the LIC's mega IPO on market volatility as the Russia-Ukraine conflict rages on, they added.While the Centre has
time until May 12 to launch the LIC IPO without filing fresh papers with markets regulator SEBI, sources stated that the listing is unlikely
in early April as financial markets have been whiplashed by the see-saw nature of news flow from the raging Russia-Ukraine conflict.On
February 13, the government had filed the draft red herring prospectus (DRHP) for the IPO with SEBI, which granted its approval for the same
last week.The government plans to sell about 31.6 crore shares or 5 per cent stake in LIC, estimated to fetch around Rs 60,000 crore to the
exchequer.At 5 per cent stake dilution, the LIC IPO would be biggest ever in the history of Indian stock market and once listed LIC's
market valuation would be comparable to top companies like RIL and TCS.LIC's embedded value, which is a measure of the consolidated
shareholders value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm
Although the DRHP does not disclose the market valuation of LIC, as per industry standards it would about 3 times the embedded value.LIC has
reserved up to 35 per cent of its total IPO size for retail investors.However, the Centre didn't disclose the discount which will be given
to policyholders or LIC employees in the initial share sale.
