Life Insurance Corporation's board met on Friday to consider a proposed mega initial public offering (IPO) of the state-run insurance behemoth, sources told CNBC-TV18. The board likely discussed a discount and the portion to be reserved for policyholders, they said.

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The proposed initial share sale is likely to fetch around Rs 65,000 crore.

LIC can offer a discount of as much as five percent and a reservation of up to 10 percent of the issue size for policyholders, sources said.

The insurer is likely to submit a draft red herring prospectus (DRHP) on Friday, sources told CNBC-TV18 earlier.

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The Insurance Regulatory and Development Authority (IRDAI) gave its go-ahead for Life Insurance Corporation's IPO proposal on February 9. The insurance regulator also submitted its comments on the proposal.

LIC is required to include a response to the insurance regulator's comments in its DRHP.

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First Published:Feb 11, 2022 10:34 AM IST