Life Insurance Corporation of India (LIC) may manage to list on the bourses around March 10 with the initial public offering (IPO) likely to open for subscription in the second week of March, persons familiar with the development have indicated.
Approvals from both the top exchanges are in place even as the mega IPO, which is expected to fetch the government around Rs 65,000 crore, awaits a nod from capital markets regulator Sebi. Investment bankers say a March 10 opening is possible with a five-day window for investors to put in their applications. Should that come, a debut on the stock exchanges is likely in the fourth week; right now, the bankers say it could be around March 23 or March 24.
The state-owned insurer is looking to offer investors a little over 316 million shares. Employees and policy holders will be offered a 10% discount to the issue price. As of now, the government is looking to offload a 5% stake. However, there are talks of the issue size being enhanced to 7.5% in the final offer document after investor appetite has been gauged.
The embedded value of LIC is Rs 5.4 lakh crore. Given the valuation of life insurance companies is typically 3 to 5 times the ev, LIC’s valuation could surpass Rs 16 lakh crore post the listing. Road shows are believe to have commenced both in the country and overseas even as a formal approval from the Sebi is pending.