LIC IPO: 5 key points that anchor investors must know
The projected initial public offering, which is expected to be one of the largest in the nation, has garnered investment pledges around 13,000 crore from anchor investors, more than twice the amount of shares available to such investors.
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FollowThe state-owned Life Insurance Corporation of India (LICI) will launch its initial public offering (IPO) for anchor investors on Monday. It will be available to the general public from May 4 through May 9. The projected initial public offering, which is expected to be one of the largest in the nation, has garnered investment pledges around 13,000 crore from anchor investors, more than twice the amount of shares available to such investors.
5 key points that anchor investors must know:
1. Following the IPO, LIC will be led by a professional board of nine independent directors, nine of whom have already been appointed. According to a PTI report, LIC managing director Siddhartha Mohanty stated that the position of chairman will be held till 2024, after which it will be replaced by the positions of MD and CEO.
2. Previously, the government announced a 5% IPO size, which was reduced to 3.5% last month owing to market circumstances. The government intends to sell 3.5 percent of its stock in LIC in order to generate Rs 21,000 crore in the market next month. The government invested 5 crore as seed money in the foundation of LIC in 1956.
3. The price band for the issuance has been set by LIC at 902-949 per equity share. The share sale will take the form of an offer-for-sale (OFS) of up to 22.13 crore equity shares, and it will begin on May 4 and end on May 9. The shares are expected to go public on May 17.
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4. Milliman Advisors, an international actuarial company, estimated LIC's embedded value, which is a measure of the consolidated shareholders' worth in an insurance corporation, at over 5.4 lakh crore as of September 30 last year.
5. Anchor investors include Singapore's GIC Pte and Norway's national wealth fund, according to the sources, who asked not to be identified before an official announcement.
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