New Delhi: The Securities and Exchange Board of India (Sebi) has approved the initial public offering (IPO) of Life Insurance Corporation (LIC), citing sources news agency Reuters reported on Wednesday.
The approval comes in the wake of reports that the initial share sale was set to be delayed to next financial year because of the volatile market stoked by the Ukraine-Russia conflict.
IPO approvals are valid for a period of 12 months from the date of final observation by the Sebi.
The central government is looking to sell a 5 per cent stake, about 31.6 crore shares, in the insurer through the IPO.
According to investment banking sources, Sebi issued the so-called final observations on Tuesday evening.
LIC’s IPO is one of the fastest to get Sebi approval; the insurer had filed its DRHP on February 12, according to news report. Once a DRHP obtains final approval, the company can launch its share sale.
However, the state-run insurer company may not launch its IPO immediately given the volatile market conditions. Investment bankers said they would want to wait till the market sentiment improves.
LIC, which has over 250 million policy holders in the country, has created significant buzz among retail investors.
However, the public listing of the LIC could be shifted to next financial year, which begins in April, as bankers and other officials have begun preparation for the process.
The central government aims to garner over Rs 60,000 crore in the current fiscal year to meet its revised disinvestment target of Rs 78,000 crore through LIC IPO. However, in the wake of the market volatility, there might be a rethink on the timing of the LIC share sale.