02 Feb , 2022 By : monika singh
NEW DELHI: The government has received LIC valuation report and is likely to file a draft red herring prospectus (DRHP) for its much-awaited initial public offer (IPO) within a week, suggests a report by ET NOW.
ET NOW quoted sources as saying that the government may look to offload 5 per cent stake initially for Rs 65,000 crore to Rs 75,000 crore, which will meet the revised divestment target of Rs 78,000 crore for FY22. So far, the government has fetched little over Rs 12,000 crore from divestments this fiscal.
The embedded value calculations have been done by implementation advisor E&Y, sources said, adding that LIC has approached anchor investors to raise about Rs 25,000 crore before the IPO.
The life insurer may reserve a 5-10 per cent quota for its policyholders, the report added.
Earlier on Tuesday, FM Sitharaman during her Budget speech had said that the IPO was expected shortly and a strategic partner Neelachal Ispat Nigam has been selected.
The LIC IPO is crucial to FY22's divestment targets.
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