LIC IPO update: Govt raises Rs 20,560 crore, shares to be listed on May 17

The state-run insurer Life Insurance Corporation has priced its initial public offering at the top band of issuance of Rs 949 per share, allowing the promoter — the Government of India — to collect Rs 20,560 crore or $2.7 billion through the public share sale. The government established a price band of Rs 902-949 per share for the offering, which went on sale from May 4 to May 9. On Tuesday, May 17, LIC shares are anticipated to be listed on stock exchanges.

On the second day of bidding on Thursday, India's largest IPO was completely subscribed. The issue was subscribed to 2.95 times, with the QIB part receiving all bids on the final day of subscription.

Also read: LIC IPO: Step-by-step guide to apply online on Paytm, Upstox

The government liquidated 3.5 percent of its stake in the state-run insurance behemoth through the public offering. Retail investors and qualifying workers received a Rs 45 discount per equity share, while policyholders received a Rs 60 discount per share. Due to the current stormy market circumstances, LIC lowered its IPO size to 3.5% from 5% previously agreed. 

Even with the lower size, the LIC IPO will be the largest initial public offering in the country. So far, the amount raised through Paytm's IPO in 2021 has been the highest ever at Rs 18,300 crore, followed by Coal India and Reliance Power.

Also read: LIC IPO: Today is your last chance to bid, but should you?

LIC, the country's oldest insurer, was founded in the late 1950s and had the market to itself until the government opened it up to private competition in 2000. It is still India's largest insurer, with a sales agent in practically every neighbourhood across the 1.4 billion-person country.

 For the first time, the corporation has retained a distinct quota for policyholders, who will receive a 10% reserved allocation and a discount when purchasing LIC shares.

Also Read | LIC IPO: Know the allotment date and how to check your application status

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