India’s largest public offering of Life Insurance Corporation of India (LIC) has received the nod from the capital market regulator Sebi to float the mega IPO, an exclusive report from CNBC stated. The nod comes in days after several reports hinted a delay in the company’s plan to go public due to the extreme volatility in the markets. However, there is confirmation from the company or the government on the development.
The life insurer had filed the draft papers on February 13 this year with the capital markets regulator. However, there is no clarity if the government would launch the LIC IPO by March 31 as the conditions remain unfavorable to raise around Rs 75,000 crore from the markets. On the other hand, the government has to complete its disinvestment target for the fiscal year through the stake sale of LIC, which can push the government to float the IPO this month itself.
Earlier this month, few market experts had also emphasized on the valuation and pricing part of the LIC IPO. The issue should be priced lower for the retail investors to lap up and to leave something on the table, FE reported quoting market experts.
