The much-awaited issue of Life Insurance Corporation’s (LIC) initial public offering (IPO) is scheduled to open this week on Wednesday, May 4 and will be open for bidders till May 9. The insurance company has fixed its own price band for this. on initial share sale from 902 949 each.
As per market observers, LIC shares are available at Premium (GMP) Today in Gray Market 75. The allotment of shares in the demat account of the bidders will take place till 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.
The government, which completely owns the insurance giant, is planning to sell 3.5% instead of 5% due to market conditions. LIC IPO Net Offer for Sale (OFS) will be there.
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.
Out of 22.13 crore shares offered for sale, about 5.93 crore shares have been reserved for anchor investor share. The share of employee reservation is 1.58 million while the policyholder reservation is 22.14 million.
The size of LIC’s IPO will be the largest ever in the country. government to increase 20,557.23 crore by selling 3.5 per cent of its equity stake or 22.13 crore shares of LIC. It approx. much lower than previously estimated 60,000 crores.
Sources told Reuters that LIC’s IPO has received bids for twice the size of the anchor book from large investors, including Singapore’s GIC Pte and Norway’s Sovereign Wealth Fund among anchor investors.