LIC IPO is finally here, the government filed the draft red herring prospectus (DRHP) with the market regulator SEBI to offload 5% stake in the mega insurer which as per the 'embedded value' calculation will get the govt Rs 63,000 cr.
According to the DRHP the government will put on sale 316,249,885 equity shares through an offer for sale there is no new shares being issued.
The retail portion has been fixed at 35 per cent of the offer while 50 per cent of the net issue is reserved for qualified institutional buyers (QIBs).
LIC’s so-called embedded value, a key metric for insurers that combines the current value of future profits with the net value of assets, is pegged at Rs 5.4 lakh crore ($72 billion)
Also Watch: LIC IPO: When size does matter, a few numbers that will baffle you
The 65-year-old firm has nearly $530 billion in assets and 250 million policy holders and makes up almost two-third of the market.
Experts expect the issue to be open for public in early March