Business
LIC is soon bringing the country’s biggest IPO
Published
2 years agoon
Before launching the IPO of LIC, a notification has been issued to amend the rules of Foreign Exchange Management Act (FEMA). Following the cabinet’s approval, the Department for Promotion of Industry and Internal Trade (DPIIT) made these amendments on March 14. The FEMA notification was necessary to implement the provisions of DPIIT.
Now up to 20% FDI can be done in LIC. The maximum limit of FDI has been kept at 20% because under the existing rules, the maximum limit for foreign investment in public sector banks is also 20%. The government is planning to reduce its stake in LIC through IPO. LIC had in February filed a draft red herring prospectus (DRHP) with market regulator SEBI for the IPO. Now RHP can be filed soon.
Government has time till May 2 to launch LIC IPO
The notification of amendments to the FEMA rules shows that the long pending IPO of LIC may come soon. The government has time till May 12 to launch an IPO without filing fresh papers with the Securities Exchange Board of India (SEBI) for approval. If the IPO is not launched by May 12, then the government will have to file DHRP again.
Government may sell 5% shares to raise Rs 65,000 crore
The government’s plan was to launch the IPO by March 2022, but went into wait and watch mode due to the Russia-Ukraine war. Now when the market improves again, the government has again started preparing to bring IPO. The government can raise Rs 65,000 crore by selling about 31.6 crore or 5% shares in LIC.
This will be the biggest IPO ever in the Indian stock market
LIC’s issue will be the biggest IPO ever in the Indian stock market. After listing, the market valuation of LIC will be at par with top companies like RIL and TCS. Prior to this, Paytm’s issue was the biggest and the company had raised Rs 18,300 crore from IPO last year.
You may like
-
North Korea asserts that the test of a multiple-warhead missile was successful
-
The Student Wing of Congress storms the Exam Body NTA office and locks it from within
-
“During President Murmu’s address to Parliament, PM Modi was shown 73 times, and LoP Rahul Gandhi was shown six times”: Congress
-
NASA contracts Elon Musk’s SpaceX to deorbit the International Space Station in 2023.
-
A Caution For The CBI In The Delhi Court’s Arvind Kejriwal Custody Order
-
Bar Council of India requests that bar associations abstain from demonstrating in opposition to new criminal laws