LIC policyholders are expected to receive a Rs 60 discount on shares when the IPO begins on May 2
Through the offering, the government will sell 22.13 crore shares, or its 3.5 percent holding in the insurance.
In the company’s initial public offering, the government is expected to grant policyholders of Life Insurance Corporation of India (LIC) a Rs 60 discount (IPO). According to sources, the price bracket for the issue has been set at Rs 902-949.
According to a top government official, retail investors and LIC staff will likely receive a Rs 45 discount on subscribing to the shares of India’s largest insurer in its IPO.
Through the offering, the government will sell 22.13 crore shares, or its 3.5 percent ownership in LIC. A total of 2.21 crore shares, or 10% of the total issue size, will be allocated for policyholders.
According to the official, over 15 lakh shares will be allocated for LIC staff.
After the reservations are taken into account, the remaining 50% of shares will be allotted to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to non-institutional bidders. Anchor investors are projected to receive about 60% of the QIB quota.
The IPO will be offered to anchor investors on May 2 and to the general public on May 4 through May 9. On Wednesday, LIC is expected to make an announcement on the IPO.
