LIC IPO Dates Announced: Issue Opens On May 4, Price Band Set At Rs 902-949 Per Share

LIC IPO Update: The government, which is planning to offload 3.5 per cent stake in the LIC, is expecting the listing will fetch Rs 21,000 crore to the state exchequer

LIC's retail investors and eligible employees will get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per equity share. Image: Getty ( Image Source :LIC IPO Getty )

New Delhi: Life Insurance Corporation (LIC), the country's biggest insurer, on Wednesday in a press conference said the much-awaited public issue of the life insurance firm is set to open on May 2 for anchor investors and on May 4 for subscription.

The LIC has fixed a price band at Rs 902-949 per share for Rs 21,000-crore IPO. 

The government, which is planning to offload 3.5 per cent stake in the LIC, is expecting the listing will fetch Rs 21,000 crore to the state exchequer. The IPO values LIC at Rs 6 lakh crore.

The retail investors and eligible employees will get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per equity share. 

According to a report by the PTI, the issue will open for subscription on May 4 and to close on May 9. The bid lot for the issue would be 15.

With this IPO, which is through an offer-for-sale (OFS) route, the government is looking to divest its 3.5 per cent stake in the insurer by selling 22.13 crore shares, according to the report.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, who was present at the occassion, said that the listing of LIC is part of the long-term strategic vision of the government and will highly enhance the value of the corporation in the long-run.

"This (LIC IPO) is right sized, considering the capital market environment and will not crowd out capital supply given the current market environment," Pandey said, while adding that this IPO is set to be biggest in the country despite its reduced offer size.

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. "The decision to list now has taken into account the combination of multiple factors, including market demand, stabilizing market conditions, reducing volatility, domestic flows and the corporation's financial performance," he said.

Given the constraints in the stock market, Pandey said that LIC IPO will not crowd out capital and monetary supply in the market.