LIC IPO: “LIC 3.0” to begin with India’s biggest ever IPO on May 4
Life Insurance Corporation’s (LIC) public offering offer is finally here, with the long-awaited initial public offering (IPO) open for anchor investors on May 2 and for the general public from May 4 to May 9, Insurance confirmed on Wednesday. in his press conference.
The launch of “LIC 3.0”, said LIC Chairman MR Kumar, referring to India’s biggest public issue, will be in the price band of ₹902-949, with a discount of ₹60 for policyholders and ₹60 for retail investors and employees. 45 will be a discount of Rs. ,
India’s largest insurance company LIC is likely to list on the stock exchange on May 17, a week after the mega IPO closes.
Tuhin Kanta Pandey, Secretary, DIPAM, said, “LIC will be the biggest public offering ever. The public will evaluate it effectively. This is a great opportunity and something that was considered unimaginable and now has investors to invest in. is coming.”
Listing of LIC had a strong commitment of the government. LIC is a strong corporation of the people of India and its listing is part of the government’s long-term strategic vision and for creating long-term value for shareholders, he added.
The employee reservation share will be 5 per cent of the post-offer equity share capital, and the policyholder reservation share will be 10 per cent of the offer size.
The company said that the LIC board has approved the reduction of its IPO issue size from 5 per cent to 3.5 per cent.
The government will now sell the 3.5 per cent dilution of its stake in LIC for Rs 21,000 crore to Rs 20,557 crore, valued at Rs 6 lakh crore.
Tuhin Kanta Pandey, Secretary, DIPAM, said, “Looking at the market constraints, the size of LIC’s IPO is right. We aim to champion LIC as a long term value creator in the equity market.
The decision to list was taken keeping in view the market demand, stabilizing the market conditions. He said that Indian markets have recovered from the initial shock, while global sentiment is weak, Indian markets are strong due to domestic inflows and is the only market in the world to promote such a large public offering.
Government sources had said on Tuesday that depending on the demand and subscription in the IPO, the government has the option of increasing the stake offer to 5 per cent, so the state exchequer will get Rs 30,000 crore from its sale. Equity.
But the sharp drop in ambitions for the IPO would be a setback for the government and challenge its fiscal balance as was the disinvestment situation and the aim was to replenish the state exchequer.
Final Offer Whether it is a 3.5 per cent stake sale for ₹21,000 crore or 5 per cent for ₹30,000 crore, LIC’s IPO will be India’s biggest IPO ever.
In fact, the size of the public issue will be less than Rs 21,000 crore, which will be larger than the amount raised from Paytm’s IPO in 2021 – which is currently the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore. Is. and Reliance Power (2008) Rs 11,700 crore.
Earlier, the government was expecting over Rs 60,000 crore by selling around 31.6 crore or 5 per cent stake in the life insurance firm to meet its disinvestment target of Rs 78,000 crore in 2021-22.
The stake sale was initially planned to begin in March 2022, but the Russia-Ukraine crisis derailed those plans as the stock markets were highly volatile.