Much-awaited LIC IPO Expected To Be Launched By The End Of April

After repeatedly getting delayed month over month, India¡¯s biggest ever IPO seems set for the launch soon. The LIC IPO is expected to be launched by this month¡¯s end.

LIC's board will likely meet over this weekend to finalize its results for FY22 and subsequently file a revised public offer document by mid-next week, people familiar with the matter reportedly told ET.

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The sources also stated that roadshows for the LIC IPO would start soon and the IPO is expected to open by the end of this month of April 2022.

Also, amid a grim global market outlook and inflation projections, the government plans to cut the LIC¡¯s valuation by 30% to make the issue more attractive, as per what sources told Mint.

The govt aims to make the IPO a success despite concerns about soaring inflation, imminent interest rate hikes, and uncertainty surrounding the Russian declaration of war on Ukraine that has rattled markets and economies across the globe.

As per the sources, the government now looks at a valuation of around ?11 lakh crore instead of ?16 lakh crore planned earlier.

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The government is reportedly looking to maintain a balance for investors once the shares start trading and ensure that the first-time investors, many of whom are LIC policyholders and have opened Demat accounts to buy into the IPO, are not disappointed.

As per what a govt source told ET, the IPO listing ¡°would be completed by May 12¡±.

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As per market regulator SEBI¡¯s guidelines, the government has time till May 12th 2022 to launch the LIC IPO without filing fresh papers with SEBI. And if it misses the window, then LIC would have to file fresh papers completely, which again would further delay the much-awaited IPO.

For the uninitiated, the LIC IPO would be the biggest IPO in the history of the Indian stock market. Once listed and gone public, LIC's market valuation may be comparable to top market cap companies like Reliance Industries Limited and Tata Consultancy Services.

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