In the initial public offer (IPO) of state-run insurance company Life Insurance Corporation of India (LIC), the central government plans to raise up to Rs 25,000 crore from anchor investors. Before the IPO, the board structure of LIC will be changed and new accounting standards will be adopted.
According to a report published on Mint, anchor investors will be invited after completion of valuations and pricing of the IPO.
A source said that there could be around two dozen anchor investors in LIC’s IPO. Only 10 percent stake in this country’s largest insurance company can be worth at least one lakh crore rupees.
Anchor investors will buy that part of the company’s shares which is meant for Qualified Institutional Buyers (QIBs).
LIC has started making its compliance process as per the listing norms. Changes will also be made in the board of the company. The board of LIC is not yet as per the norms of the capital market regulator SEBI.
The documents for the IPO will be submitted by the company within six months. Once the annual financial report of the company is prepared, the process of valuation will be simplified.
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