LIC likely to file DHRP with SEBI for its IPO

Government-owned Life Insurance Corporation of India (LIC) is probably going to file its draft papers with market regulator SEBI for its initial public offer (IPO) tomorrow (February 10), sources told Business Today TV on Wednesday.

The issue, after approval of SEBI, is probably going to hit the market in March and up to 10 percent of the issue size would be reserved for policyholders.

Earlier, during BT Budget RoundTable, DIPAM Secretary Tuhin Kanta Pandey had said that the embedded value of LIC will be upwards of ₹5 lakh crore.

The embedded will help establish the market valuation of LIC and determine how much cash the government raises in the flotation. That will be critical for the government to help with meeting its divestment targets and keep its fiscal deficit in check.

LIC’s listing is significant for the government to meet its lowered revenue estimates of divestment of ₹78,000 crores for the current financial.

The government has up until this point raised with regards to ₹12,000 crores from the privatization of Air India and stake sale in other PSUs.
Actuarial firm Milliman Advisors LLP India has worked out the embedded value of LIC, while Deloitte and SBI Caps have been appointed as Pre-IPO transaction advisors.