LIC IPO's Price Band Set At Rs 902-949, Discount Of Rs 60 For Policyholders | Check Details Here

LIC IPO Announcement: The much-awaited initial public offering of the country's largest insurer Life Insurance Corporation will open on May 4 and close on May 9

The logo of state-owned Life Insurance Corporation ( Image Source : Getty Images )

Source : Getty Images

New Delhi: The much-awaited initial public offering (IPO) of the country's largest insurer Life Insurance Corporation (LIC) has fixed the price band at Rs 902-949, with a discount of Rs 60 discount for policyholders, banking sources told ABP LIVE on Tuesday.

For retail investors and employees, the discount will be Rs 45.

According to the sources, the IPO of LIC will open on May 2 for anchor investors, and on May 4 to May 9 for investors.

When ABP LIVE reached out to LIC for comments, its spokesperson, however, declined to speak on the issue.

The IPO is likely to fetch Rs 21,000 crore to the exchequer. The government is planning to sell 3.5 per cent stake in the state-owned LIC. The IPO values LIC at Rs 6 lakh crore.

In February, LIC had filed draft papers with the Securities and Exchange Board of India (Sebi) wherein it had said that the government would sell 5 per cent stake or 31.6 crore shares in the insurer.

However, the IPO plans were thrown out of gear amid the ongoing volatility in stock markets becaue of the war between Russia and Ukraine, forcing the government to cut the issue size to 3.5 per cent.

LIC IPO will contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal year.

The government has pegged disinvestment receipts at Rs 65,000 crore in the current fiscal year, up from Rs 13,531 crore raised in the last fiscal year.

LIC's embedded value, which is a measure of the consolidated shareholders value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.

Based on investor feedback, the market value of government-owned LIC has been pegged at 1.1 times its embedded value or Rs 6 lakh crore.