Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management, said the government will initiate talks with the Securities and Exchange Board of India (SEBI) to exempt Life Insurance Corporation of India (LIC) from the minimum public shareholding norms. (Deepam).
according to this SEBI’s Minimum Public Shareholding RulesListed units with a valuation of more than 1 trillion must have at least 25% public shareholding within five years of listing. However, the government will seek more time to meet the requirements of further selling of its stake as it could lead to “undue pressure on the markets”.
“We are going with 3.5% now, and if the regulatory requirement of 5% is to be met every year then it will be like doing a mega IPO every year. LIC IPO is an extraordinary event, so we will talk SEBI To relax the norms in this case. We have given them a voice,” Pandey said on Friday.
According to Pandey, retail investors, employees and policyholders will be able to invest up to a maximum of Rs. 2 lakh each, and the categories will be mutually exclusive, indicating that if a retail investor is an employee and also a policy holder, he/she will be able to invest the maximum 6 lakh in IPO
Anchor investors will be finalized before May 2, and the book size is expected to be approx. 5,600 crore, he added.
The government is hoping to increase 21,000 crore at the upper end of the IPO price band 902-949 each. On the government and LIC’s stake in IDBI Bank, Pandey said the government would decide on the quantum of stake sale in the lender after listing. “The structure of the exit will be known after the roadshow and an expression of interest will be issued. Management of control will be passed on, but the level of equity will have to be decided,” Pandey said.