New Delhi: The much-awaited initial public offering (IPO) of insurance behemoth Life Insurance Corporation of India (LIC) may be launched with a discount for its policyholders as the company looks to file its draft red herring prospectus (DRHP) this week.
LIC is likely to offer a discount of 5 per cent to its policyholders in the upcoming public offering, ET Now reported, citing sources.
Furthermore, LIC may file its draft red herring prospectus (DRHP) on February 10, a source familiar with the matter told ETMarkets.com. Also, retail bidders and employees are likely to be given some concession on the price band, another source added.
Last week Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey had indicated that the state-run insurance player is likely to file its DRHP this week.
Pandey also told Reuters in a recent interview that the embedded value of LIC could be more than Rs 5 lakh crore and the enterprise value will be multiples of that.
DRHP will reveal the government’s stake that will be diluted in the LIC through IPO.
According to ET NOW sources, the government is likely to sell a 5-7 per cent stake in the IPO, to raise as much as Rs 65,000-75,000 crore from the issue.
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