LIC Public Issue | LIC Board may consider IPO proposal today, discuss discount for policyholders

LIC File photo

The board of Life Insurance Corporation of India may consider the proposal for its initial public offering (IPO) on February 11, sources told CNBC-TV18. The LIC board may discuss and approve the discount for policyholders in the IPO, and the portion to be reserved for them.

LIC can offer as much as 5 percent discount to policyholders and reserve up to 10 percent of issue size, according to CNBC TV-18. The insurer is also likely to file its draft red herring prospectus (DRHP) today.

Also Read: LIC Public Issue | Filing with SEBI likely today, IRDAI clears draft papers

The Insurance Regulatory and Development Authority (IRDAI) had cleared the LIC IPO proposal in a board meeting on February 9.

The quantum of divestment and EV numbers will be mentioned in the DRHP, it said.  LIC needs to incorporate the response to IRDAI’s comments in its DRHP.

Also Read: LIC reduces stake in listed companies ahead of IPO

While presenting Budget 2022, Finance Minister Nirmala Sitharaman had told Parliament that the initial public offering of Life Insurance Corporation of India is expected shortly.