LIC mega IPO gets SEBI's approval

New Delhi, March 9

Markets regulator SEBI has approved the initial public offering (IPO) proposal of Life Insurance Corporation of India (LIC).

However, the IPO may get delayed due to volatile market conditions and investment bankers have indicated that they would prefer to wait till market sentiment improves. Stock indices have fallen by 9% this year due to the conflict in Ukraine.

The government is planning to divest 31.62 crore shares or 5% stake in LIC to earn between Rs 60,000 crore and Rs 75,000 crore from the IPO. The final valuation will be decided closer to the IPO.

The approval came 22 days after the government-run LIC filed a draft paper for the IPO. This is the fastest clearance for any draft red herring prospectus. The share sale is being handled by 10 investment banks.