Finance
The Life Insurance Corporation’s (LIC) public issue offer is finally here, with the long-awaited initial public offering (IPO) to open on May 2 for anchor investors and on May 4 for the general public and will close on May 9, the insurance behemoth confirmed on Wednesday at its press conference.
Given below are the details of the mega public offer-
- LIC’s IPO is set to open on May 2, 2022 for anchor investors and on May 4 for subscription for retail investors. The issue will close on May 9.
- Secretary in the Department of Investment and Public Asset Management (DIPAM) Tuhin Kanta Pandey said that LIC is on course to its ₹ 21,000 crore IPO.
- He said that the insurance behemoth aims to raise ₹ 5,630 crore on the upper price band through a pre-IPO placement of shares.
- “We have planned to launch the LIC IPO now because of solid anchor book, reducing volatility, strong domestic flows, Mr Pandey said.
- “While global sentiments are weak, Indian markets are resilient due to strong domestic inflows. We expect strong retail participation in the IPO,” he added.
- LIC Chairman M R Kumar described the public offer as LIC 3.0
- The IPO will be a pure offer for sale of up to 221.37 million shares. It reserved around 59.29 million shares for the anchor investor portion.
- Employee reservation portion is at 1.58 million while policyholder reservation at 22.14 million. Qualified institutional buyers (QIB) portion is set at 98.83 million.
- The basis of allotment will be done on May 12 and shares will be credited on the Demat accounts on May 16. The company plans to list on exchanges on May 17.
- India’s largest IPO, which slashed around 60 percent of its issue size due to poor market conditions, had earlier announced its price band at ₹ 902-949 a share.
