LIC IPO: Insurer gets market regulator SEBI's approval for initial offer

New Delhi: The market regulator Securities and Exchange Board of India (SEBI) has approved the initial public offering proposal of the Life Insurance Corporation of India (LIC), sources said on Wednesday.

The SEBI’s approval came 22 days after the government-run LIC filed a draft paper for the IPO.

LIC had filed the Draft Red Herring Prospectus (DRHP) with the market regulator SEBI on February 12.

Sources said the SEBI has issued the observation letter to the Life Insurance Corporation of India for the IPO. This is one of the fastest approvals given by the market regulator for an IPO. Also Read: BharatPe in trouble? GST authorities expand probe into alleged tax evasion

As per the DRHP, up to 31,62,49,885 (31.62 crores) equity shares will be on offer through the offer for sale (OFS), representing 5 per cent of the equity stake of Life Insurance Corporation of India. Also Read: After SBI, HDFC and BoB, Kotak Mahindra Bank revises FD interest rates