LIC IPO update: Here's what company Chairman said ahead of the launch

State-run Life Insurance Corporation of India (LIC), which is planning the country`s largest Initial Public Offering (IPO) next month, is well capitalised, the company`s chairman M.R Kumar said on Monday.

Kumar said LIC`s potential investors should not worry about government control post the IPO as decisions in the country`s largest insurance company are taken by its board and not by the government, which will hold 95 per cent of stake post the IPO, the Reuters reported.

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As per the report, LIC is planning to sell a 5% stake to raise about $8 billion next month, which could make it India`s largest IPO by far. The company has filed DRHP with SEBI on February 13, 2022. The issue will be opened for the public in March.

LIC has given advertisements in all newspapers regarding IPO announcing that Demat accounts will also be opened in Common Service Center. The Life Insurance Corporation of India (LIC) has submitted Draft Red Herring Prospectus paving the way for the most-awaited public issue of the year.

Life insurance policyholders who have one or more than one policy on the DRHP submission date, i.e. February 13 2022, shall be eligible for claiming the quota benefit.

Life Insurance Corporation of India (LIC) has asked all its policyholders to update their Permanent Account Number (PAN) details in their policy record by February 28 to be eligible for participating in its upcoming public issue, according to the draft red herring prospectus (DRHP)

Additionally, policyholders can visit to open their Demat account CDSL:  https://www.cdslindia.com/DP/dplist.aspx  and NSDL: https://nsdl.co.in/Open_NSDL_Demat_Account.php

On February 13, the state-run insurer filed draft papers with capital market regulator Sebi for the sale of a 5 per cent stake by the government for an estimated Rs 63,000 crore.

The initial public offering (IPO) of over 31.6 crore shares or 5 per cent government stake is likely to hit the market in March, and employees and policyholders of the insurance behemoth would get a discount over the floor price.