The central government is all set to launch the mega initial public offering (IPO) of Life Insurance Corporation (LIC) soon. The government is targeting a valuation of 13-14 lakh crore for LIC. The draft red herring prospectus is believed to be filed by Friday. The government may look to sell a 3-4% stake in the company and raise up to Rs 1 lakh crore. LIC continues to be the dominant life insurer even in the liberalised scenario of Indian insurance.
In a first, a part of the IPO will be reserved for LIC policy holders and the insurance company is encouraging policyholders to open Demat accounts ahead of its IPO to participate in the bidding process.
