382030-lic-zeeNew Delhi: What people were eagerly waiting for is over. The launch date of the country’s biggest IPO has been fixed. According to sources, LIC’s IPO will be launched on May 4 and investors will be able to apply for IPO till May 9. Sources in a leading newspaper said that an important meeting of the LIC board is going to be held in this regard on Tuesday, in which the launch date will be decided. An official announcement will be made in the meeting.

Earlier the government was going to sell 5% stake in the country’s largest life insurance company, but now the government will offer only 3.5% stake in the IPO. LIC’s valuation for IPO is Rs. 6 lakh crore has been done. Accordingly, the size of this IPO is now Rs. 21,000 crores. However, an official said that if the demand in the market remains good, then the government can increase the demand by 5 per cent. The government, in its draft red herring prospectus (DRHP) filed with Sebi on February 13, had offered 31.62 crore shares, which was about 5 per cent of the total equity shares.

It is worth noting that this IPO of a government insurance company is very important in meeting the government’s disinvestment target. The launch of LIC IPO has been postponed for several months. The market has been selling for some time now due to several reasons including the Russo-Ukraine war. This is the reason why LIC’s IPO is getting delayed.