LIC IPO opens today, targets Rs. 21,000 crores
Mumbai, May 04: India’s largest insurance public sector company Life Insurance Corporation of India’s much awaited IPO opens today. Key business strategy of LIC is to capitalize on the growth opportunities in the Indian life insurance sector wherein the total premium for life insurers is forecasted to grow at 14-15 percent CAGR over the next five years.
The offer will open for subscription opens today and the last day to subscribe to the IPO is May 9 (Monday).
Price Band: The price band for the offer has been fixed at Rs 902-949 per equity share
of face value Rs 10 each. However, LIC would offer a discount of Rs 60 to its eligible policyholders while a discount of Rs 45 would be offered to retail investors and employees. However, LIC would offer a discount of Rs 60 to its eligible policyholders while a discount of Rs 45 would be offered to retail investors and employees.
More details: The government of India is aiming to dilute its stake by 3.5 percent and garner Rs 21,000 crore at the upper end of the price band, from its stake in the insurance behemoth. The IPO is entirely an offer-for-sale of 221,374,920 equity shares by the government, which will receive the entire proceeds from the IPO. Out of the shares on the block, up to 1,581,249 units are reserved for employees and up to 22,137,492 are reserved for the policyholders.
Of the total offer size, 50 percent of the net offer will be reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. LIC Policy holders will benefit and be treated as retail investors with Rs. 60 discounts in price.
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