Can we expect the final details of the LIC IPO in the coming week?

Finally, there appears to be some clarity emerging on the finer points of the LIC IPO. After the Government filed a revised DRHP with SEBI, the final approval is expected on Monday i.e. 25th April. The final details of the IPO of LIC are only expected to be announced on the 27th April. However, the government sources have hinted at two distinct possibilities viz. the size of the issue being drastically reduced and valuations being sharply cut.

As per the latest reports, LIC plans to sell only 3.5% of its stake in LIC for a total issue size of Rs.21,000 crore. This will value LIC at around Rs.600,000 crore, which is approximately half of the original valuation planned. LIC will sell a total of 22 crore shares and LIC has been now valued at just about 1.1X actuarial valuation as per Milliman Advisors. The IPO will be just 14.7% bigger than the Paytm IPO. Price band and other details are expected on 27th April.