LIC IPO: From Launch Date To Price Band; All You Need To Know

LIC Listing: The insurance giant has fixed the price band at Rs 902-949 per share for the Rs 21,000 crore issue that is likely to open on May 4

The government has decided to sell 3.5 per cent of its stake in LIC for Rs 21,000 crore, valuing the insurance behemoth at Rs 6 lakh crore. Image: Getty

Source : Getty

New Delhi: The long awaited initial public offering (IPO) of the country's largest insurer Life Insurance Corporation (LIC) is set to hit the IPO market next week. The Securities and Exchange Board of India (Sebi) has allowed the government to offload 3.5 per cent stake in the insurer.

The IPO is set to open on May 2 for anchor investors and on May 4 for subscription.

Here’s All You Need To Know About The Upcoming Issue

The insurance behemoth has fixed the price band at Rs 902-949 per share for the Rs 21,000 crore issue that is likely to open on May 4.

Policyholders would get a Rs 60 discount, while retail investors and employees will get Rs 40 discount, according to the state-run insurer in a news meet on Wednesday.

The issue will be open for subscription on May 4 and is expected to close on May 9.

The stake sale was initially planned in March 2022, however, the Russia-Ukraine war impacted the plans as stock markets remained highly volatile.

The government has decided to sell 3.5 per cent of its stake in LIC for Rs 21,000 crore, valuing the insurance behemoth at Rs 6 lakh crore. Last week, the Centre made the decision to lower the issue size to 3.5 per cent.

Initially in February, the government had planned to divest 5 per cent stake or 31.6 crore shares of the insurer and had filed draft papers with the Sebi.

Previously, the government was expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in FY21-22.