The three-day initial public offering (IPO) of the country’s largest life insurer Life Insurance Corporation of India (LIC) will open for public subscription next week on Wednesday, May 4 and will end on May 9. The price band of LIC IPO has been fixed 902-949 per share.
With this IPO, which is through the offer-for-sale (OFS) route, the government is looking to sell its 3.5% stake in the insurer by selling 22.13 crore shares. In February, the government had planned to sell a 5% stake in the company. Despite the small size, LIC IPO Will be the biggest public issue ever in the country.
As per market observers, LIC shares are available at Premium (GMP) Today more than 70 in the gray market 50 tomorrow. The allotment of shares in the demat account of the bidders will take place by May 16 and the shares of the company are expected to be listed on the stock exchanges BSE and NSE on Tuesday, May 17, 2022.
Retail investors and eligible employees will get a discount in the initial share sale 45 per equity share and policyholders will get a discount 60 per equity share. Bidding can be made for a minimum of 15 equity shares and thereafter in multiples of 15 equity shares. At the upper end of the price band the government will have to deposit around 21,000 crores.
DIPAM secretary Tuhin Kanta Pandey had said that LIC’s share sale has been trimmed to the “right size” so as not to crowd out capital inflows into the market, and stressed that the issue is open to all, especially retail investors. The price for is incremental.
Sources told Bloomberg that sovereign wealth funds from Norway, Singapore and Abu Dhabi have committed to be anchor investors in the mega issue. Anchor names to be announced on Monday will include Norges Bank Investment Management, GIC Pte and Abu Dhabi Investment Authority.