New Delhi: The Life Insurance Corporation of India (LIC) will hold a press conference on Friday ahead of its initial public offering (IPO) on May 4.
The state-run insurer has set its IPO price band at Rs 902 to Rs 949 per equity share.
The LIC IPO, which is set to open on May 4, is also the largest ever public listing in India to date.
According to Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, the issue will remain open for bidders till May 9.
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The government targets to raise Rs 20,557 crore by offloading 3.5 per cent of its equity stake or 22.13 crore shares of LIC. The amount is substantially lower than the earlier projection of about Rs 60,000 crore.
The central government, which wholly owns the insurance company, plans to offload a 3.5 per cent stake instead of 5 per cent as mentioned in the previous Draft Red Herring Prospectus (DRHP).
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 state-run insurer by selling 22.13 crore shares.
The government is selling 22,13,74,920 shares in the LIC, aiming to raise around Rs 21,000 crore.
Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.
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.