The Securities and Exchange Board of India (SEBI) approved the updated DRHP for the LIC IPO, people in the know of the matter said.

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SEBI also gave its nod for the reduction in size of the LIC IPO to 3.5 percent, sources said, adding that there would be no greenshoe option in the Initial Public Offering (IPO).

The Life Insurance Corporation's (LIC) IPO is likely to open on May 4, 2022 and close on May 9, 2022, sources said.

Anchor book for the LIC IPO is likely to open on May 2, 2022, sources added.

The LIC IPO size is at Rs 21000 crore and the market cap will be at Rs 6 lakh crore, sources said.

The government is likely to file RHP for the LIC IPO by Wednesday.

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The sources also added that the LIC board will meet this week to decide the price band for the IPO and policy holder reservation and discount.

According to the LIC Act, the government can reserve up to 10 percent for policyholders and it can give up to 10 percent discount to policyholders.

Earlier in the day, official sources told CNBCTV-18 that the government will not approach the market for IPO-bound LIC's follow-on public offer for a year.

An FPO is a process in which a company already listed on the stock exchange issues new shares to the existing shareholders or to the market for new investors. An FPO is used by a company to diversify its equity base or pay off debt.

According to the rules, companies are not allowed to launch FPOs for six months after their IPOs.

Also Read: Explained: What is an FPO? How is it different from an IPO?

(Edited by : Shloka Badkar)

First Published:Apr 25, 2022 9:19 PM IST