LIC IPO: State-run Life Insurance Corporation of India (LIC) is expected to file its updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), Zee Business' Anurag Shah report. 

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The filing will come once the Government gives its go-ahead on two key issues - one related to the quantum of the stake sale in the forthcoming public issue of LIC and the other is related to the reservation for policy holders in the Initial Public Offering (IPO), Shah said.  

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The government is expected to take a final call on these two issues by today, Shah added. All other clearances have come through and these are the two issues that require a government clearance, he further said. 

Once this is done, it will be a big development for the company and its IPO, he added further.

After the DRHP filing this week, the RHP or Red Herring Prospectus will likley be fild by next week, Shah said. 

The expectations are that Government could sell is 6.5 per cent stake in the insurance behemoth. 

After the quoto for retail investors is finalised, it will be known how much the discount will be available for the policy holders under this quota.    

In the run-up to the mega IPO, on February 13, the government had filed the draft red herring prospectus (DRHP) with the regulator giving details of financial results till September. The DRHP got Sebi approval in March 2022.

LIC had previously filed updates on its December financials in DRHP. It had said that the updates were required to be done as per Sebi observations.

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

The government is expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal.

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