The initial public offering (IPO) of the Life Insurance Corporation (LIC) is likely to be launched in early-May, reports Moneycontrol.
The government is in touch with bankers and financial advisors on the red herring prospectus (RHP), according to the sources quoted in a CNBC-TV18 report.
An RHP, also known as an offer document, is filed by a company with the capital markets regulator Securities and Exchange Board of India (SEBI) ahead of a public listing.
According to the report, the government might offer to sell over 5 per cent of its stake in LIC through the IPO.
As per the draft red herring prospectus (DRHP) filed with SEBI, the government will sell more than 31 crore equity shares of LIC.
Up to 10 per cent of the issue size will be reportedly reserved for policyholders.
“We have a window till 12 May to launch the IPO based on the papers filed with SEBI. We are watching the volatility and will file the RHP giving the price band soon,” an official in the know of developments was quoted in the report.
The government will have to file fresh papers with the Securities and Exchange Board of India (SEBI) if the IPO is pushed beyond 12 May.
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