As an Indian life insurance company preparing to go public during the next month, a number of developments in the process began to emerge, in the midst of global global market projections and inflation projections. The government weigh all points for Woo investors and promises. This is the new one:
Cut valuation
Sources told Mint that the government planned to cut pub assessments at 30 percent to make problems more interesting despite concerns about soaring inflation, rising interest rates immediately, and uncertainty about the Russian invasion in Ukraine which has vibrated markets throughout the world.
The government now sees the assessment of around Rs 11 lakh crore from the IPO, cut from RS 16 Lakh Crore planned beforehand, said the source.
The government is looking to maintain balance for investors after stocks begins to trade and ensure that investors are the first time – many of them are LIC policy holders and have opened a Demat account to buy to IPO – not disappointed, the report was added.
The reaction of officials from the Investment Department and Management of Public Assets (Depam), Ministry of Finance, and Lic was awaited.
Other officials say that the size of the IPO is LIC, which is expected around the end of April or early May, now it will be Rs 37,500 Crore.
Revised IPO paper in the work
The LIC board will meet this weekend to “complete the FY22 results and then submit a revised Public Offering Document in the middle of next week”, sources say in the economic period. The government’s source also said listings “will be completed on May 12”.
The company will submit a revised document with the Regulatory Authority and Development of Indian Insurance (Irdai) after the results are approved by the Board. There was also a chip from the opening of the end of April for this problem after the roadshow was complete.
What we know
The government can also submit a draft updated Red Herring Prospectus (UDRHP) for IPO with the Securities Regulator market and Exchange Board of India (SEBI), the source told CNBC-TV18.
In accordance with the current DRJA, the government will disburse 5 percent of the shares in the insurance giant through 31.6 crore shares to Garner Rs 63,000 Crore. This will help meet the Disinvestment target which is limited to the center of RS 78,000 Crore for current fiscal.
Some of the IPOs will be provided for anchor investors. Also, up to 10 percent of the size of the problem will be provided for policy holders.
LIC public problems will be the biggest IPO in the history of the Indian stock market. After being registered, the LIC market assessment will be comparable to top companies such as Reliance Industries Limited and Tata Consultation Services.
Sebi Guidelines for Listing
The government has until May 12 to launch LIC IPO without submitting a new paper with market regulators and if it misses the window, then LIC must submit a new paper, giving results from the December quarter and also updating embedded value.
LIC embedded value, which is the size of the consolidated shareholder value in an insurance company, was set around Rs 5.4 Lakh Crore on September 30, 2021, by an international actuarial company, Milliman Advisors. Although DRHP does not disclose LIC market assessment, according to industry standards, it will be three times the embedded value.