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LIC IPO DRHP Filed with Sebi; Govt to Offload 5%; 10% Reserved for Policyholders

Around 10 per cent of the LIC IPO would be set aside for the LIC poilcyholders

The central government filed the much-awaited draft red herring prospectus (DRHP) for the initial public offering (IPO) of Life Insurance Corporation of India (LIC).

  • Last Updated:February 13, 2022, 20:48 IST

Life Insurance Corporation of India (LIC) filed the draft red herring prospectus (DRHP) with the market regulator for its much-awaited initial public offering (IPO). This is going to be the largest-ever listing in the history of Indian capital markets. “The DRHP of LIC IPO has been filed today with the SEBI,” department of investment and public asset management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.


The central government owned 100 per cent stake in Life Insurance Corporation. The upcoming IPO will be entirely offer for sale. The embedded value of LIC have been calculated at  Rs 5.39 lakh crore as of September 31, 2022, according to the draft paper. The government is planning to offload 316,249,885 equity shares of face value Rs 10 each through the public issue, according to the draft prospectus.

The proceeds of LIC IPO will go to the central government and the insurance company will not receive any funds as the issue will be entirely offer for sale.

LIC IPO Quota: 

Around 50 per cent of LIC IPO will be reserved for the Qualified Institutional Buyers (QIB). For Non-Institutional Investors (NII), the portion will be around 15 per cent. A significant portion will also be reserved for the policyholders and it should not exceed 10 per cent of the public issue. For employees also, 5 per cent of LIC IPO will be reserved.

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Source: News18