Life Insurance Corporation of India (LIC) has filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) with the market regulator Securities and Exchange Board of India (SEBI).

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In what will be the country's biggest-ever public offering, the government is looking to sell a stake of 5 percent stake for an estimated Rs 63,000 crore. The issue will be an offer for sale of 31.6 crore shares by shareholders, President of India, acting through the Ministry of Finance.

At least 35 percent of the offer is reserved for retail investors and not more than 15 percent for non-institutional bidders, as per the DRHP.

Also Read | LIC IPO: Where to find what in the 649-page DRHP document

It added that not more than 50 percent of the offer shall be allocated on a proportionate basis to QIB (qualified institutional buyer). LIC may allocate up to 60 percent of QIB portion to anchor investors on a discretionary basis. One-third of the anchor investor portion shall be reserved for domestic mutual funds. Further, 5 percent of the net QIB portion shall be available only to mutual funds while the remainder shall be available for allocation to all.

Before bidding for LIC IPO, which is likely to hit the D-street in March, investors must check the DRHP for details about the insurer's business operations, financials, history, offer objectives, embedded value and key risks.

Also Read : How to spot red flags in a DRHP

Here’s how to download LIC DRHP from the SEBI website

1. Open the SEBI website – https://www.sebi.gov.in/

2. On ‘What’s New’ segment, click on ‘View All’

3. Since LIC DRHP was filed on February 13, it’ll show up right at the top currently

4. To check at a later date, once can type 'Life Insurance Corporation of India’ in the search bar or search by date

5. Click on the LIC link. DRHP will open a PFD format.

6. Click on the download icon at top right corner to save a copy

Alternate method

1. Open the SEBI website – https://www.sebi.gov.in/

2. Place the cursor on the ‘Filings’ tab

3. Place the cursor on ‘Public Issues’ in the drop-down menu

4. Click on ‘Draft Offer Documents Filed with SEBI’ from the drop-down menu

5. List of DRHPs filed with SEBI will show up, with the latest one at the top

6. Click on the LIC link. DRHP will open a PFD format.

7. Click on the download icon at top right corner to save a copy

Also Read | LIC IPO FAQs: Which policyholders can apply for shares and other questions answered

(Edited by : Kanishka Sarkar)

First Published:Feb 14, 2022 12:23 AM IST