LIC Board Likely To Consider IPO Proposal Today, May Also Discuss Discount For Policyholders: Report

The board of the Life Insurance Corporation (LIC) is likely to take up the proposed mega Initial Public Offering (IPO) of the state-run insurance giant today (11 February).

The LIC board will also discuss a likely discount and the share that should be reserved for the policyholders, sources were quoted in a CNBC-TV18 report as saying.

According to the report, the proposed IPO is likely to fetch around Rs 65,000 crore for LIC.

The stater-run insurance giant can offer a discount of as much as five per cent and a quota of up to 10 per cent of the issue size for policyholders, the sources added.

Earlier, CNBC-TV18 had reported that the insurer is likely to submit a draft red herring prospectus (DRHP) on Friday (11 January).

It should be noted that the Insurance Regulatory and Development Authority (IRDAI) had already given its nod for LIC's IPO proposal on 9 February. The IRDAI reportedly also submitted its comments on the proposal and the insurance firm is required to include a response to the insurance regulator's comments in the DRHP.