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SC refuses to grant interim relief to petitioners demanding stay on LIC allotment process

SC declined to interfere with the LIC IPO process at this juncture. A bunch of policyholders had moved the apex court alleging violation of the LIC Act

ET Now Digital

Updated May 12, 2022, 13:43 IST

SC declines to grant interim relief in challenge to the LIC IPO

Photo : REUTERS

The Supreme Court on Thursday declined to grant interim relief to petitioners who challenged the amendments to the LIC Act by Finance Act of 2021 and stay the IPO allotment process.

A bench comprising Justices DY Chandrachud, Surya Kant and PS Narasimha declined to intervene with the process, stating, "In matters of IPO, the court will be reluctant in granting interim relief. It is about investments”.

“We are not inclined to grant any interim relief,” the bench said. It also issued notice to the Centre and LIC on the batch of pleas seeking their response within eight weeks.

The petitioners argued that the amendments to the LIC Act affects the interests of the policyholders and that the changes should not have been brought under through Money Bill. A council of the petitioner argued

'what is the legal character of LIC' and added that it is a mutual benefit society converted into a joint stock company.

State-run insurance giant LIC‘s public offer was subscribed 2.95 times and the QIB portion was also fully taken on the final day of bidding.

LIC reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing choppy market conditions. Even after the reduced size, LIC IPO is going to be the biggest initial public offering ever in the country. So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.

The share allotment process of the LIC IPO is expected to start on Thursday, March 12.

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