Indian Stock marketThe wait for the biggest public issue in the history of is expected to begin early next month. Next week, the government may announce the date of its market entry, including the life insurance company LICNo. IPO (Initial Public Issue) involves fixing the price band. Apart from this its size can also be cut. Government LICNo. IPO About Rs. 65,000 crore. But now it is expected to raise only Rs 30,000 crore. Out of which Rs. 21,000 crore through public issue and Rs. 9,000 crore is likely to be raised through the Green Shoe option.
Sources close to LIC IPO have given this information to Business Standard. Sources said that LIC’s IPO may open on May 2. Despite the size cut, this will be the biggest public issue ever in the country. Paytm had earlier raised Rs 18,300 crore through an IPO. The government wants to sell its 5 per cent stake in the life insurance company. The government currently owns 100% of the company.
Decrease in value
According to sources, the value of the company has also gone up to Rs 6 lakh crore. Documents submitted to market regulator SEBI in February 2022 for the LIC IPO said the government plans to raise about Rs 65,000 crore through the IPO at a market value of Rs 12 lakh crore. Experts say that the fall in the value of LIC has increased the chances of a successful IPO. The government is trying to ensure that investors get the most out of it.
Under the green shoe option, the company issuing the IPO is given the option to have more issues so that the size of the IPO can be changed according to the market demand and conditions. As well as the company’s shares should be listed at a good price. It should not fall below the issue price at the time of listing.
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