The IPO, which is now open to retail and institutional investors, is scheduled to close on May 9
The IPO, which is now open to retail and institutional investors, is scheduled to close on May 9
LIC’s public offering, the country’s largest IPO to date, opened for subscription for retail and institutional investors on Wednesday.
The government aims to generate about 21,000 crore by diluting its 3.5 percent stake in the insurance giant.
The LIC initial public offering (IPO), now open to retail and institutional investors, is scheduled to close on May 9th.
LIC has set the price range for the issue at ₹902-949 per share. The offer includes a reservation for eligible employees and policyholders. Retail investors and eligible employees receive a rebate of ₹45 per share and policyholders receive a rebate of ₹60 per share.
The shares will be sold via an offer for sale (OFS) of up to 22.13 billion shares. The shares are expected to be listed on May 17th.
LIC has cornered just over £5,627 billion from anchor investors, mostly run by domestic institutions. Anchor Investors (AIs) stake (5,92,96,853 shares) was subscribed at a price of ₹949 per share.
LIC reduced its IPO size to 3.5% from a previously decided 5% due to prevailing market conditions. Even after the reduced size of around £20,557 billion, LIC’s IPO will be the largest-ever IPO in the country.
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 was formed by the merger and nationalization of 245 private life insurance companies on 1st September 1956 with an initial capital of £5 crore.
The product portfolio includes 32 individual products (16 participating products and 16 non-participating products) and seven individual optional driver benefits. The insurer’s group product portfolio comprises 11 group products.
As of December 2021, LIC had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of new business premiums, 71.8% in terms of number of individual policies issued and 88.8 percent in terms of number of the issued group policies.
