New Delhi: First IPO General Offer (IPO) that will come from Life Insurance Life Corporation (LIC) can come with a discount for millions of policyholders because the government is ready to submit a Draft Red Herring Prospectus (DRHP) or offer documents this week, the investment department said and Secretary of Public Asset Management (Depam) Tuhin Kanta Pandey.
“Under the retail window, certain reservations are there. We also have a policy holder window. We have made provisions based on LIC law which up to 10% of this problem can be offered to policyholders with competitive-based discounts. There will be a reservation for employees Also, “he said.
Some concessions can also be expected for retail investors and employees, two people close to the transaction advisor for the IPO saying asking for anonymity, but refusing to provide details. Pandey, however, confirmed the possibility of a discount for just a little policy holder and did not comment on the category of other investors.
Discounts can be offered to small investors because the government intends to encourage participating from ordinary people in the IPO proposed by Lic, saying one of the people mentioned above. Advisers expect the size of the problem to be between 5% and 10% Pandey said the DrHP would reveal the percentage of government shares will be diluted in the LAC through the IPO. “Minimum 5% of course is expected,” he said.
Reduction of the expected results of the resulting results in the revised estimate (Re) stage 2021-22 has nothing to do with the size of the IPO and LIC assessment because the government’s disinvestment revenue in the current financial year can even cross the figure back, he said.
The budget presented on February 1 trim the target disinvestment of the original budget estimate (BE) of ₹ 1.75 trillion to ₹ 78,000 crore in 2021-22. Target disinvestment (on 2022-23) also conservative on ₹ 65,000 crore Estimated target disinvestment and actual acceptance can be different for various reasons and should not be correlated with the size of the IPO LIC, Pandey said.