LIC IPO ━ the wait is over as the highest Initial Public Offering is expected to open on May 2. The central government has set the price band for the initial offering of Life Corporation of India at Rs. 902-949 and may offer a discount of Rs 60 to policyholders.
On the other hand, retail investors and employees of LIC are likely to receive a discount of Rs. 45 on subscribing to the shares, a senior official said.
The board of LIC has approved three categories ━ the reservation for policyholders, employees, and the issue dates, the official added. Government may sell 221.3 million shares or a 3.5 percent stake through the opening. This would help the government to collect Rs 21,000, valuing the insurer at 6 trillion.
The much-awaited IPO is set to open on May 4 and is likely to close on May 9, as per the sources. The anchor book for the offer is expected to open on May 2, further noting that there will be no greenshoe option in the IPO.
According to the previous reports, the LIC will keep the majority of shares. Now, when the government is all set to launch the IPO, keen people need to know what changes it will bring.
- The price of the IPO has been set at Rs. 902-949.
- LIC valuation is now close to Rs 6 lakh crore; earlier it was 17 lakh crore expected.
- At the new rate, the government could raise $2.42 billion at the lower end of the price band.
- Every employee and policyholder will get a discount of Rs. 45 and 60 respectively.
- Besides policyholders and employees, the remaining shares will be allotted as 50% for qualified institutional buyers, 35% for retail buyers, and 15% for non-institutional buyers.
- LIC is open on May 2 for anchor investors and May 4 for subscriptions and is likely to close on May 9.
LIC IPO, notably, holds the attention of everyone, businessmen, policyholders, and other people who are keen to invest in the share market. Let’s wait for May 2!