InvestorQ : Can we expect the LIC IPO to file with SEBI by end of November 2021?
vaishnavi mhatre made post

Can we expect the LIC IPO to file with SEBI by end of November 2021?

vidhya Laxmi answered.
12 months ago

It is now almost official that the LIC IPO may finally see the filing of the draft red herring prospectus (DRHP) with SEBI by the first week of December. It may be recollected that LIC has already completed a number of preliminary steps like statutory amendments to Life Insurance Corporation Act, appointing merchant bankers, legal advisors and registrars. The only one thing pending is the actuarial embedded valuation from Milliman Advisors.

From the last week of November, merchant bankers are expected to start talking to potential anchor investors to gauge the colour of market demand. LIC has appointed 10 merchant bankers which include 5 international investment banks and 5 Indian investment banks. LIC may eventually offer 5% or 10% depending on the eventual embedded valuation that emerges for LIC.

The final issue size is expected in the range of Rs.60,000 crore to Rs.100,000 crore depending on how whether the government sells 5% or 10%. The embedded valuation by Milliman Advisors has been through a series of delays but it is finally expected to happen by the first week of December. That would be in time for a December filing giving LIC enough time to complete the entire IPO and list LIC on the bourses by March 2022.