CNBC-TV18 has learned that the government is aiming to file the DRHP for the LIC IPO with Sebi by January 2022.
Yash Jain reports that there is likely to be minimum dilution of 5 percent and the government can take it higher depending on the appetite of the market. The government may look to raise about Rs 60,000-75,000 crore from the public issue.
LIC is in the process of finalising and deciding on the embedded value post which bankers will look at what kind of multiple can be given for the valuation of LIC IPO.
Currently, the government owns 100 percent stake in LIC. Once listed, LIC is likely to become one of the biggest domestic companies by market capitalisation.
The government has appointed 10 merchant bankers including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India to manage the mega initial public offering of country's largest insurer LIC.
Other selected bankers include SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd, a circular on the divestment department website said.
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