LIC board approves IPO issue size to be cut to 3.5% from 5%

The government will sell 3.5% equity for Rs 21,000 crore valuing India's largest insurer at Rs 6 trillion.

Life Insurance Corporation of India’s board has approved reducing the issue size of the state-owned firm's initial public offering (IPO). The government will dilute 3.5 per cent of its shares in LIC for Rs 21,000 crore, subject to regulatory approval, said an official.

A proposal to reduce the size of LIC’s IPO to 3.5 per cent from 5 per cent proposed in its draft red herring prospectus (DRHP) was tabled and approved at a board meeting on Saturday,, the official said.

The government will now sell its 3.5 per cent equity in LIC for Rs 21,000 crore valuing India’s largest