India’s largest state-owned insurer life insurance corporation (LIC) in its prospectus filed with markets regulator SEBI has said that the net IPO (initial public offering) offer will be 4.99 per cent of the post-offer paid-up share capital of the company.
The IPO issue is expected to be the biggest public issue in the country and will hit the capital markets in March. According to the draft prospectus filed on February 13, LIC will sell 316.25 million shares (over 31 crore). According to DRHP, LIC has as of September 2021 stated that its assets under management (AUM) were 39.6 lakh crore.
Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said the IPO is 100 per cent OFS by the Government of India, and there will be no fresh issue of shares by LIC. “About 316 crore shares representing 5% equity are on offer for filing valuation,” he said.
With 283 million policies and 1.35 million agents as of March 31, 2021, the insurance company has a 66 percent market share in new business premiums. The embedded value of LIC as on September 30, 2021 was 5,39,686 crore (approx.) 5.4 lakh crore), said the DIPAM secretary.
The government plans to IPO and list Life Insurance Corporation (LIC) on stock exchanges by March. A portion of the IPO will be reserved for anchor investors.
Also, up to 10 percent of the LIC IPO issue size will be reserved for policyholders. Actuarial firm Milliman Advisors LLP India acted on LIC’s embedded value, while Deloitte and SBI Caps were appointed pre-IPO transaction advisors.
LIC’s profit had increased 14.4 billion ( 144 million or $191 million) in the six months to September; From According to the global news agency, during the same period last year, 61.4 million bloomberg,
The IPO will be managed by Kotak Mahindra, Citibank, Axis Bank, Nomura, BofA Securities, Goldman Sachs, ICICI Securities, JM Financial and JP Morgan.
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