LIC IPO price band set between Rs 902 and Rs 949: Report

By Team Newsable | First Published Apr 26, 2022, 7:21 PM IST

The government was anticipated to sell 3.5% of its interest in LIC for Rs 21,000 crore, subject to clearance from capital markets regulator Securities and Exchange Board of India, SEBI.

The Life Insurance Corporation's (LIC) long-awaited public issue offer, India's largest, will be in the price range of Rs 902-949, with a 60 reduction to policyholders and a 45 discount to retail investors and staff, according to government sources.

The IPO will be offered to anchor investors on May 2 and to investors from May 4 through May 9, according to the sources. According to reports, the LIC board accepted a reduction in the amount of its IPO offering to 3.5 per cent from 5% on Saturday.

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The government was anticipated to sell 3.5% of its interest in LIC for Rs 21,000 crore, subject to clearance from capital markets regulator Securities and Exchange Board of India, SEBI.

Also Read | LIC IPO likely to open on May 4, close on May 9; aims to raise Rs 21,000 crore

The development comes after reports suggested that the LIC IPO is expected to begin on May 4. The offering is slated to finish on May 9, Last Monday, the updated DRHP was filed to the market regulator. The government, which owns the insurance behemoth entirely, intends to raise Rs 21,000 crore by selling around 22 crore shares, corresponding to a 3.5 percent stake.

The IPO, in particular, is critical to the Centre's effort to fulfil its disinvestment ambitions. The government expects divestment proceeds to reach Rs 65,000 crore in 2022-23, up from Rs 13,531 crore in the previous fiscal year.

Also Read | LIC IPO: Government likely to cut size from 5% to 3.5%

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