The government is likely to file an updated draft red herring prospectus (UDRHP) of Life Insurance Corporation of India's (LIC) Initial Public Offering (IPO) with the market regulator Securities and Exchange Board of India (SEBI) on Wednesday, April 13, 2022,  Zee Business Correspondent Tarun Sharma said in his exclusive report on Tuesday. 

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According to Sharma, the government may sell around 5-6.5 per cent stakes in LIC to raise around Rs 50,000-60,000 crore funds through the equity market. The IPO was earlier scheduled to be launched in March, however, due to the weak market led by the Russia-Ukraine crisis, it was deferred.  

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Sharma said that the government has said to be decided to launch the biggest initial share sale of LIC by April-end between 25-29.  

On February 13, the government had filed the DRHP with the regulator giving details of financial results till September. The DRHP got Sebi approval in March 2022. 

As per the updated financials, the LIC reported a net profit of Rs 235 crore in the October-December quarter. The net profit in April-December 2021, jumped to Rs 1,671.57 crore from Rs 7.08 crore a year ago. 

According to a PTI report, the LIC IPO, at 5 per cent stake dilution, would be the biggest ever in the history of the Indian stock market, and once listed its market valuation would be comparable to top companies like Reliance Industries and TCS.  

So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore. 

“We have a window till May 12 to launch the IPO based on the papers filed with Sebi. We are watching the volatility and will file the RHP giving the price band soon,” an official said, as per PTI report.