New Delhi

The much-awaited initial public offering (IPO) of the Life Insurance Corporation of India is likely to open on May 4, sources privy to the development said.

The government, which wholly owns the insurance behemoth, plans to sell a 3.5 per cent instead of 5 per cent as mentioned in the previous Draft Red Herring Prospectus (DRHP), said sources.

LIC has cut the size of IPO from 5 per cent to 3.5 per cent due to the market condition. 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 held on Saturday.

Last month, market regulator Securities and Exchange Board of India (SEBI) approved the initial public offering proposal of the Life Insurance Corporation of India (LIC).

The company has filed the Draft Red Herring Prospectus with the market regulator Securities and Exchange Board of India (SEBI). It has time until May 12 to launch the IPO. If it is not done by May 12, the company would be required to file fresh papers with the market regulator.

ALSO READ: Musk demands long form tweets as 280 characters not enough

The government had initially wanted to list LIC in the last financial year that ended March 31 but had to delay the sale after the Russia-Ukraine war triggered a market rout