LIC IPO: Govt files updated draft papers with Q3 financials

NEW DELHI: The authorities has filed updated draft papers with market regulator Sebi for an preliminary public provide of LIC, incorporating December quarter financials of the insurance coverage behemoth, an official mentioned on Monday.
In the run-up to the mega IPO, on February 13, the federal government had filed the draft crimson herring prospectus (DRHP) with the regulator giving particulars of monetary outcomes until September. The DRHP obtained Sebi approval early this month.
“Updated DRHP of LIC with December financials has been filed,” an official mentioned, including it was required to be completed as per Sebi observations.
As per the updated financials, the Life Insurance Corporation reported a internet revenue of Rs 235 crore within the October-December quarter. The internet revenue in April-December, 2021, elevated to Rs 1,671.57 crore from Rs 7.08 crore a 12 months in the past.
The authorities is anticipating to garner over Rs 60,000 crore by promoting about 31.6 crore or 5 per cent stake within the life insurance coverage agency to fulfill the curtailed disinvestment goal of Rs 78,000 crore within the present fiscal.
The IPO was initially deliberate to be launched in March, however the Russia-Ukraine disaster has derailed the plans as inventory markets are extremely unstable.
The authorities has time until May 12 to launch the IPO with out submitting recent papers with the Securities and Exchange Board of India.
LIC’s embedded worth, which is a measure of the consolidated shareholders’ worth in an insurance coverage firm, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by worldwide actuarial agency Milliman Advisors.
Although the DRHP doesn’t disclose the market valuation of LIC, as per trade requirements it might be about 3 instances the embedded worth.
At a 5 per cent stake dilution, the LIC IPO could be the most important ever within the historical past of the Indian inventory market and as soon as listed its market valuation could be corresponding to high firms like RIL and TCS.
So far, the quantity mobilised from the IPO of Paytm in 2021 was the biggest ever at Rs 18,300 crore, adopted by Coal India (2010) at practically Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
During the present monetary 12 months up to now, Rs 12,423.67 crore has been garnered via provide on the market, worker OFS, strategic disinvestment and buyback. The goal for the complete fiscal is Rs 78,000 crore.
For the following fiscal, the disinvestment goal has been set at Rs 65,000 crore.

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