The LIC has decided to attract investors and its policy holders by taking some good steps. If any body purchases it’s policy, he will get discount.
The price band for the much-awaited Initial Public Offering (IPO) of India’s largest insurance company, Life Insurance Corporation of India (LIC), has been set at Rs 902-Rs 949 per share.
A discount of Rs 45 has been set for retail and employees, while the bid lot size has been fixed for 15 shares per lot, agencies said.
LIC has decided to give a discount to policyholders of the company. “A discount of Rs 60 per share has been set for the policyholders of LIC.
The issue is likely to open for subscription on May 4 and is expected to close on May 9, and the bid lot would be 15. Anchor investors can subscribe to the shares of the insurance company on May 2.
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The government would offload a 3.5 per cent stake in the insurance by selling 22.13 crore shares.
LIC has reserved 2.21 crore shares or 10 per cent of the issue size for its policyholders while 15 lakh shares for employees, sources said.
After policyholders and share holders’ reservations, the remaining shares will be allocated in the ratio of 50 per cent for qualified institutional buyers (QIB), 35 per cent for retail investors and 15 per cent for non-institutional investors.
Sources said 60 per cent of the QIB portion has been reserved for anchor investors.
The government in February had planned to sell a 5 per cent stake or 31.6 crore shares in the insurance and had filed draft papers with Sebi.
However, the IPO plans faced headwinds from the ongoing market volatility due to the Russia-Ukraine war.
Last week, the government decided to lower the issue size to 3.5 per cent.
The government has also filed papers with Sebi seeking exemption from the 5 per cent stake sale norm.
LIC IPO would contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal. The government has pegged disinvestment receipts at Rs 65,000 crore for the current financial year, up from Rs 13,531 crore raised in the last fiscal.
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