Budget 2022 | After FM's remark on LIC IPO, secretary of DIPAM says 'DRHP likely in two weeks'

Shortly after Finance Minister Nirmala Sitharaman referred to the upcoming LIC IPO in her Budget 2022 speech, DIPAM secretary Tuhin Kanta Pandey on February 1 said the DRHP could be filed within the next two weeks.

"Draft red herring prospectus (DRHP) of Life Insurance Corporation IPO is expected within two weeks," Pandey, the secretary of the Department of Investment and Public Asset Management, said in the post-budget press briefing.

The much-awaited IPO of the life insurance behemoth is expected to be one of the biggest in the country, with the government aiming to raise close to $12 billion by selling a minority stake to the public.

The initial public offering is also key to the government to close the gap between its disinvestment target for FY22 and the amount it has raised through the privatisation process so far.

The Centre has been able to garner around Rs 45,485.87 crore through proceeds of divestment in this fiscal, which is way lower than the target of Rs 1.75 trillion.

Also Read: Budget 2022 | Realism over FY23 divestment aim leaves questions over LIC IPO proceeds

Sitharaman, while presenting the budget earlier in the day, said the IPO of LIC is "expected shortly".

"Towards implementation of the new Public Sector Enterprise policy, the strategic transfer of ownership of Air India has been completed. The strategic partner for NINL (Neelachal Ispat Nigam Limited) has been selected. The public issue of the LIC is expected shortly. Others too are in the process for 2022-23," she said.

Also Read: India seeks regulatory fast track for LIC as it gears up for the country's biggest IPO

Recently, Bloomberg reported that the government is looking for a valuation of $203 billion for the life insurance giant, which will make it the second-largest listed company by market capitalisation.

The government is said to be mulling a two-part IPO of LIC due to apprehensions over the equity market's ability to absorb such a large primary issue at one go.