The Life Insurance Corporation of India (LIC) on Wednesday announced the largest initial public offering (IPO) in India's history. The IPO is scheduled for May. Details of the initial sale of LIC shares were also disclosed.
LIC insurers and their employees, as well as investors in general, must carefully consider all the details before investing any money in an IPO.
IPO LIC DETAILS
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- LIC IPO size is Rs 20,557 crores. In the IPO, the government will sell a 3.5% stake in the insurance giant, selling shares for Rs 22.13 crore.
- To date, Paytm's 2021 IPO was the largest in Indian history at Rs 18.3 billion, followed by Coal India in 2010 at nearly Rs 15.5 billion and Reliance Power in 2008 at Rs 11.7 billion.
- The IPO will open for subscription on May 4th and close on May 9th. The advisory investor window will open on May 2.
- LIC has set a price range of Rs 902-949 per share. The proposed lot is 15 shares.
- LIC has reserved 10% of the shares for its policyholders and 0.7% for employees.
- The National Insurer provides policyholders with a discount of Rs 60, for LIC employees and individual investors a discount of Rs 40.
- Subject to policyholder and shareholder reservations, the remaining shares will be allocated 50% to Qualified Institutional Buyers (QIB), 35% to Retail Investors and 15% to Non-Institutional Investors.
- 60% of QIB shares are reserved for anchor investors.
- Based on investor feedback, the market value of the state-owned ATCMs was set at 1.1 times their estimated value, or Rs 6 million.
- An LIC IPO would significantly increase the proceeds from the sale of assets budgeted for the current financial year. The government has set capital gains for the current fiscal year at Rs 65,000 crore, compared to Rs 13,531 crore in the last fiscal year.