New Delhi: Amid fears that the initial share sale of LIC will be delayed to the next financial year due to market volatility stoked by the Ukraine crisis, LIC’s initial public offering (IPO) has received a nod from market regulator the Securities and Exchange Board of India (Sebi).
The approval was granted within 22 days of filing a draft red herring prospectus (DRHP) by the country’s largest insurer, Sebi, according to a Business Today report.
- IPO approvals are valid for 12 months from the date of final observation by Sebi.
- The government has plans to sell 5 per cent of LIC’s stake this month before the financial year ends on March 31. The offering is seen as critical to the government’s plan to raise funds for budgeted spending.
- Through the IPO of LIC, the government aims to garner over Rs 60,000 crore in the current fiscal to meet its revised disinvestment target of Rs 78,000 crore.