Life Insurance Corporation of India’s (LIC) initial public offering (IPO) is undergoing various modifications and revisions in order to gain investor trust before it is launched in the coming days.

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The IPO is now expected to hit the market on May 2 and its size has been reduced from Rs 55,000-60,000 crore to Rs 21,000 crore, with a greenshoe option of Rs 9,000 crore, according to Business Standard.

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The overall IPO size is now Rs 30,000 crore, resulting in a 5% dilution of the government’s holding in the insurance giant.

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The current adjustment lowers the LIC’s valuation from Rs 10-11 lakh crore to Rs 6 lakh crore or 1.1 times the underlying value of Rs 5.4 lakh crore. The embedded value is a measure of the worth of an insurance company’s consolidated shareholders.

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Within this week, the government is expected to make a decision on the IPO date. It might happen as soon as next week, according to CNBC TV-18. The government has until May 12 to conduct the initial public offering (IPO) without having to file new papers.

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If the IPO is not launched now, it will have to be postponed until August or September due to the need to file new papers with revised quarterly results and values.

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The sale of 31.6 crore shares in the country’s largest insurer was scheduled for March but was postponed due to the Russia-Ukraine war. The public offering would reserve 35% of its offer for retail investors, 10% for policyholders, and 5% for LIC employees.

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The IPO would make a significant contribution to the current fiscal year’s divestment proceeds. Divestment receipts are expected to reach Rs 65,000 crore in 2022-23, up from Rs 13,531 crore the previous fiscal year.