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TMI Blog2022 (5) TMI 1557X X X X Extracts X X X X X X X X Extracts X X X X ..... jury. HELD THAT:- On the construction of Section 28, the submission which has been made on behalf of the petitioners would warrant further deliberation. The Court has been apprised of the fact that as many as 73 lakh applicants, both from within India and beyond have subscribed to the IPO. The IPO has been over subscribed six times even in the category which has been specially reserved for policy holders. It is necessary to note that (i) the dilution of the share holding of LIC as a result of the Offer for Sale is to the extent of 3.5%; (ii) 22.13 crore equity shares of a face value of Rs 10 each are being offered at a premium of INR 939; (iii) the expected receipts into the Consolidated Fund of India are estimated to be INR 20,500 crores; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Act 1956. By the provisions of Finance Act 2021, an amendment was brought about to the provisions of the Life Insurance Act 1956. 3 On 13 February 2022, a draft Red Herring Prospectus [RHP] was filed with SEBI for the Initial Public Offering [IPO] of LIC. Consequential steps were taken. On 26 April 2022, the RHP was made available on SEBI's website, indicating a price band of Rs 902 to 949 per equity share with a discount of Rs 60 for policy holders. On 27 April 2022, a price band advertisement was published. The Government announced that LIC's IPO will be opened on 2 May 2022 for 'anchor investors' and from 4 May 2022 to 9 May 2022 for the general public. The window for bidding for anchor investors was opened on 2 May 2022. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a mutual benefit society is sought to be converted to a joint stock company. This, according to the submission, amounts to an expropriation of the surplus from participating policy holders and its distribution to the share holders to whom shares would be allotted as a result of the IPO. 5. Ms Jaising submitted that hitherto, 95% of the surplus typically went to participating share holders while 5% was retained by the Central Government. This entitlement of the participating share holders, it has been urged, would be altered as a result of the amendment which has been brought about by the Finance Act 2021 to the provisions of the Life Insurance Corporation Act 1956 and would violate the provisions of Article 300A of the Constitution. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Leave Petition arising from the judgment of the Madras High Court, it has been submitted that though the High Court dismissed the petition on 21 March 2022, the Special Leave Petition before this Court was instituted only on 2 May 2022. Similarly, it has been submitted that though the Bombay High Court declined ad - interim relief on 11 April 2022, a praecipe for urgent circulation was declined on 2 May 2022 at which stage this Court has been moved. The delay, it is urged, would militate against the grant of relief. 9 The issues which have been raised in the proceedings would merit further consideration, particularly having regard to the parameters for the passage of a Money Bill which is pending consideration before a larger Bench in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecially reserved for policy holders. 13 Apart from the above considerations, it is necessary to note that (i) the dilution of the share holding of LIC as a result of the Offer for Sale is to the extent of 3.5%; (ii) 22.13 crore equity shares of a face value of Rs 10 each are being offered at a premium of INR 939; (iii) the expected receipts into the Consolidated Fund of India are estimated to be INR 20,500 crores; (iv) the IPO opened for anchor investors on 2 May 2022 and for members of the general public on 4 May 2022 and closed on 9 May 2022; and (v) the IPO has been over subscribed by 2.95 times by the general public, that is, net of anchor investors. The position has been tabulated in the note which has been submitted by the Additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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