RAS question
LIC IPO in 2022 was the largest IPO in India at that time with a size of approximately:
Correct answer: (B) ₹21,000 crore.
LIC's 2022 IPO was approximately a ₹21,000 crore issue, making it India's largest IPO at that time.
Explanation
LIC's May 2022 IPO is rounded in the MCQ to ₹21,000 crore because Fortune India reported, citing the prospectus filed with SEBI, that the issue raised ₹20,557.23 crore. That figure is the substance behind option B. Fortune India says this cemented the IPO as the largest ever in the country, so the point being tested is not just the number but the scale of the government's disinvestment. The government planned to dilute 3.5% of its stake in LIC, and the issue size was revised downwards from 5% because of severe market volatility. The listing happened at a discount, reinforcing that market conditions shaped the final IPO outcome.
Why the other options are wrong
- (A) ₹10,000 crore is too small; the prospectus-based figure was ₹20,557.23 crore, which rounds to the ₹21,000 crore option.
- (C) ₹30,000 crore overstates the realised IPO size, since the reported proceeds were about ₹20,557.23 crore.
- (D) ₹50,000 crore reflects the idea of a much larger planned offer, but the final issue was scaled down and the realised size was about ₹21,000 crore.
Concept
This tests capital markets and disinvestment, especially how IPO size, stake sale and market conditions interact in a major public-sector listing. RAS repeats such examples because they connect current economic events with fiscal policy and public-sector reform.