The price range has been set at ₹902-949 per share for the issue.
The price range has been set at ₹902-949 per share for the issue.
LIC’s public offering will also remain open for subscription over the weekend to allow people to participate in the state insurer’s mega IPO.
This is perhaps the first time special permission has been granted for a public offering.
The issuance period also includes bids on Saturday, May 7, 2022 and Sunday, May 8, 2022, LIC informed exchanges.
Early bidding was only allowed on May 7th (Saturday).
To facilitate this, the Reserve Bank of India (RBI) ordered all ASBA-designated bank branches to remain open to the public on Sunday to facilitate the processing of applications for LIC’s IPO.
The state-owned LIC’s initial public offering (IPO), the country’s largest offering to date, opened for subscription by retail and institutional investors on Wednesday.
Offer ends May 9th (Monday).
The government, in order to facilitate LIC IPO bidding, has requested that all bank branches dedicated to processing ASBA (Application Supported by Blocked Amount) applications open to the public on May 8, 2022 (Sunday). be allowed to remain open, the RBI had said in a statement on Wednesday.
“The matter has been examined and it has been decided that banks will be allowed to keep all their ASBA-designated branches open on May 8, 2022 (Sunday) for the above purpose,” it said.
Generally, ASBA is the mechanism through which investors apply for shares in a public offering.
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 get a discount of £45 per share, while policyholders get a discount of ₹60.
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 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 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 plans (16 participating and 16 non-participating) 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 gross premiums written, 61.4% in terms of new business premiums, 71.8% in terms of number of individual policies issued and 88.8% in terms of number of the issued group policies.
