Don’t miss the latest developments in business and finance.

LIC may list on May 17; IPO of right size, says Dipam Secy Tuhin Pandey

The government is selling 221,374,920 shares in LIC, aiming to raise around Rs 21,000 crore

LIC, Life Insurance Corporation
BS Web TeamPTI New Delhi
2 min read Last Updated : Apr 27 2022 | 1:38 PM IST
Life Insurance Corporation of India (LIC) will come out with its IPO on May 4. The company has set a price band at Rs 902 to Rs 949 per equity share, said Dipam Secretary Tuhin Kanta Pandey. He added that it will be called LIC 3.0 phase.

In a press conference he said, "LIC IPO will not crowd out capital and monetary supply in the market. The IPO is right sized, given the constraints in the market. The government has a long commitment to list LIC on the stock exchange and the listing LIC is a long-term strategic vision of the government."

Despite the reduced size, LIC IPO is the biggest in India yet. 

LIC is likely to list on the stock exchanges on May 17, a week after its bumper IPO closes. According to the final papers filed with Sebi, the allotment of shares to the demat account of bidders will happen by May 16, post which LIC would commence trading of equity shares in the stock exchanges and list "on or about May 17".

The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders. Over 98.8 million shares are reserved for Qualified Institutional Buyers (QIBs) and over 29.6 million shares for non-institutional buyers.

As earlier reported by Business Standard, policyholders may get a discount of Rs 60. Retail investors and the employees of LIC, on the other hand, may get a discount of Rs 45 on subscribing to the shares of India’s largest insurer, a senior government official said.

The government may sell 221.3 million shares, or 3.5 per cent stake, in LIC through the offering. This would help the government garner Rs 21,000 crore, valuing the insurer at Rs 6 trillion. The Securities and Exchange Board of India has approved the reduction in the issue size, the official said.

Topics :LIC IPOIPOsMarkets mayhem MarketsLife Insurance Corporation

Next Story