The planned first public offering by the state-owned Life Insurance Corporation of India (LICI) has attracted interest from more than 25 domestic and overseas anchor investors, an official said here on Friday.
The government plans to dilute 3.5% of its stake in LIC to raise 21,000 crore from the market next month.
When LIC was formed in 1956, the Government provided £5 crore as seed capital.
An official from one of the top managers said 50% of the supply is reserved for QIPs, including anchor investors.
He said 35% is reserved for individual investors, 15% for high net worth individuals and 10% for policyholders.
The anchor book will open on May 2, he said.
Thirty percent of the portion reserved for QIPs is reserved for anchor investors, he said.
LIC Chief Executive Siddhartha Mohanty told reporters here that even after the IPO, government backing will continue under Section 37 of the LIC Act.
He said state ownership in LIC will not fall below 51%.
In response to an inquiry, he said: “The government has not opted for an additional issuance of shares by LIC, opting instead for a dilution as the company is cash rich and has a healthy solvency”.
Mr Mohanty said the center had not taken a dividend for the past two years and plowed back 5,600 crore to the life insurer.
Post IPO, LIC will be managed by a professional board of directors with nine independent directors who have already been appointed.
Mr Mohanty said the post of chairman will last until 2024, when it will be replaced by MD and CEO.
With the largest leadership position in life insurance market in India, the company has ₹40 lakh crore in assets under management (AUM) and reserves of 30 lakh crore.
