LIC IPO proposal filed with SEBI

New Delhi

The central government-owned Life Insurance Corporation of India (LIC) filed its draft red herring prospectus for its mega initial public offering (IPO) with the Securities and Exchange Board of India (Sebi) today. Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey wrote in a tweet, 'The DRHP of LIC IPO has been filed today with the SEBI.'

After the successful liquidation of state-owned airline Air India, the focus is now on the Life Insurance Corporation of India (LIC). Union Finance Minister Nirmala Sitharaman has made a big announcement in the Union Budget without LIC's Initial Public Offer (IPO). He said that LIC IPO is going to come in the market very soon. As a result, ordinary people will benefit. The Center has set a target of Tk 75,000 crore for the fiscal year 2022-23 through public allocation. Apart from LIC, the Center aims to complete the pending liquidation process of Bharat Petroleum, BEML, Pawan Hans and Shipping Corporation in the next financial year.

According to sources, Sitaraman had an important meeting with high-ranking officials of the finance ministry before presenting the budget. There he discussed the deregulation of LIC. There has been a detailed discussion on the impact of LIC's share market on the market. At present, the central government owns 100 per cent stake in LIC. The government had set a target of Tk 1.75 lakh crore for private investment in the current financial year. It could not be fulfilled. This time, LIC IPO is expected to play a major role in raising funds for the exchequer through the 'disinvestment pipeline'.
According to data provided by the Centre's Department of Investment, Investment and Public Asset Management (DIPAM), the government has already raised Rs 9,330 crore through public sector enterprises and Rs 35,116.62 crore in dividends. Presenting the budget in this context, the Finance Minister informed that the Center is going to adopt a new policy on PSU tomorrow.

Ahead of Sitharaman's budget announcement, DIPAM secretary Tuhin Kant Pandey said the LIC IPO would be listed on the stock exchange by the end of March. This has already been discussed with the merchant bankers. At the same time, the government recently asked SEBI to complete the examination of LIC IPO related documents within 3 weeks so that the government can complete it within the current financial year. The government has set a target of raising around Rs 1 lakh crore from LIC's IPO.