The public offering of Life Insurance Corporation (LIC) of India will take place between the price band of ₹902 and ₹949, with ₹60 discount for policyholders and ₹45 discount for employees and retail investors of LIC on subscribing to the shares of India’s largest insurer in its IPO, said a top government official.
According to officials aware of the decision taken during a high-level meeting on Tuesday, the government will sell 22.13 crore shares or its 3.5 per cent stake in LIC through the offering. About 10 per cent of the issue size or 2.21 crore shares would be reserved for its policyholders.
About 15 lakh shares would be reserved for LIC employees of LIC, said the official.
Post considering the reservations, the remaining 50 per cent shares would be allocated for qualified institutional buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional bidders. About 60 per cent of QIB quota is likely to be reserved for anchor investors.
The IPO would open on May 2 for anchor investors, and on May 4 to May 9 for public. LIC is scheduled to make an announcement about the IPO on Wednesday.