The much-hyped LIC IPO opened today for the general public in the price band of Rs 902 to Rs 949 per equity share. The LIC IPO is one of the biggest public issues ever, valued at Rs. 21,000. It was eagerly awaited by the general public as well as institutions.
This is one of the biggest government steps toward disinvestment. It plans to sell a 3.5 percent stake instead of the five percent as stipulated earlier. Through the sale of LIC IPO government wants to mop up Rs. 65,000 crores.
After India’s biggest public issue, the Life Insurance Company (LIC) initial public offering (IPO) opened to primary markets this morning, there has been a mad rush to bid for it. LIC has kept 15.81 lakh shares for employees and around 2.21 crore shares for policyholders.
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The LIC IPO has been valued at Rs 21,000 crore. The public issue will remain open for bidding to the general public till May 9, 2022. However, there is a cap on the maximum shares one can bid for. It is to be applied in lots; each LIC IPO lot has 15 LIC shares. One can apply for a minimum of one and a maximum of 14 lots or 210 shares. This means the minimum amount required to apply for the LIC IPO is Rs. 14,235 ( Rs 949 x 15).
The LIC policyholders can avail of Rs. 60 discount per share while LIC employees get Rs. 45 discount per share. Ten percent of the total size of the issue has been reserved for the policyholders while five percent shares have been reserved for the employees.
The IPO was to be launched before March 31 but it was postponed due to sluggish market conditions.
The LIC IPO has received ₹13,000 crores worth of investment commitments from anchor investors. This is double the value of shares offered to such investors. The LIC shares are likely to be listed on BSE and NSE on May 17.
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