LIC, Rainbow Children's Medicare and eMudhra get SEBI nod to float IPOs

The Securities and Exchange Board of India (SEBI) has approved Life Insurance Corp of India's (LIC) initial public offering on March 8, the regulator said in a statement. The capital market regulator also approved the IPOs of Rainbow Children's Medicare Ltd and eMudhra Ltd.

The government will sell more than 31 crore equity shares of LIC, according to the draft red herring prospectus filed with SEBI in February. A portion of the IPO would be reserved for anchor investors. Also, up to 10 percent of the LIC IPO issue size would be reserved for policyholders.

The government was expecting to garner Rs 63,000 crore by selling a 5 percent stake in the life insurance major to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.

The government is looking to sell the stake through an offer for sale (OFS) and there is no fresh issue of shares by LIC. The government holds a 100 percent stake or over 632.49 crore shares in LIC. The face value of shares is Rs 10 apiece.

In December 2021, Rainbow Children's Medicare Ltd, a multi-speciality pediatric hospital chain, filed preliminary papers with SEBI to raise over Rs 2,000 crore.

Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad. Since then, it has established its reputation as a leader in multi-speciality pediatric services, with strong clinical expertise in managing complex diseases.

In November 2021, eMudhra filed draft papers with SEBI. The IPO consists of a fresh issue of  Rs 200 crore and an offer for sale of up to 8.51 million shares by its existing shareholders and promoters.