Government. sets LIC issue price at ₹949 per share; Policyholders, small investors receive a discount

The share sale raised approximately 20,557 crore for the government.

The share sale raised approximately 20,557 crore for the government.

The government adjusted the issue price of LIC shares ahead of the listing of the country’s largest insurer on March 17.

However, LIC policyholders and retail investors have purchased the shares at a price of ₹889 and ₹904 per share, respectively.

The initial public offering (IPO) of Life Insurance Corporation (LIC) closed on May 9th and shares were allotted to bidders on May 12th. The government acquired more than 22.13 billion shares, or a 3.5% stake, in LIC through the IPO at a price range of ₹902-949 per share.

Retail investors and eligible employees of LIC were offered a rebate of ₹45 per share off the issue price, while policyholders received a rebate of ₹60 per share.

According to the prospectus filed by LIC on May 12, the offer price of the share sale was set at ₹949 per share.

Policyholders and retail investors were allotted shares after application of the rebate applicable to them.

The share sale raised approximately 20,557 crore for the government.

LIC’s IPO – India’s largest to date – closed with nearly three subscriptions, mostly from private and institutional buyers, but participation from foreign investors remained muted.

So far, the amount mobilized from Paytm’s IPO in 2021 was the largest ever at 18,300 crore, followed by Coal India (2010) at almost 15,500 crore and Reliance Power (2008) at 11,700 crore.

LIC had last month reduced its IPO size to 3.5% from a previously decided 5% due to the prevailing unsettled market conditions. Even after the reduced size of over £20,557 billion, LIC’s IPO is the largest-ever IPO in the country.

LIC will be listed on the stock exchanges and its shares will start trading on May 17th.

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