Reduction in LIC IPO issue size from 5 % to 3.5%

New Delhi: Board of LIC has approved a reduction in its initial public offering (IPO) issue size to 3.5 percent, according to the sources. Earlier the IPO was proposed at 5 percent. The government will now dilute 3.5 percent of its percent shares in LIC for Rs 21,000 crore, subject to the approval of the capital markets regulator.

According to officials, the cut in the size of IPO to 3.5 percent was approved in the board meeting held on Saturday. The government had proposed the sale of its 5 percent equity. That would value LIC at Rs 6 trillion. 

It is estimated that the LIC's IPO may be launched in the first week of May. However the government initially wanted to list the IPO in the last financial year, Somehow it got delayed due to the Russia-Ukraine crisis.