Lagatar24 Desk
New Delhi, April 27: The long-awaited Life Insurance Corporation (LIC) public issue offer is finally here, with the long-awaited initial public offering (IPO) will open on May 2 for anchor investors and from May 4 to May 9 for the general public, according to the insurance behemoth’s news conference on Wednesday.
‘LIC 3.0’ will begin, according to LIC Chairman M R Kumar, referring to India’s largest public issuance, which will be priced between Rs 902 and Rs 949, with a 60 percent discount for policyholders and a 45 percent discount for retail investors and employees.
The largest insurer in India, LIC, is expected to debut on stock exchanges on May 17, a week after its mammoth IPO.
“LIC to be the biggest public offering ever. The public will evaluate it effectively. it is a great opportunity and something which was considered unthinkable and is now coming to investors to invest in,” said DIPAM secretary Tuhin Kanta Pandey.
“The government had strong commitment to list LIC. LIC is a strong corporation of India’s people and its listing is part of a long term strategic vision of the government and is meant for long-term value creation for shareholders,” he added.
Employee reservations will account for 5% of the post-offer equity share capital, while policyholder reservations will account for 10% of the offer amount. The government would now sell 20,557 crores for 21,000 crore, a 3.5 percent dilution of its interest in the insurance behemoth, valuing it at 6 lakh crore. Given the market limits, DIPAM secretary Tuhin Kanta Pandey believes the size of the LIC IPO is appropriate. We wish to promote LIC as an equity market long-term value builder.
Notably, the stake sale was supposed to start in March 2022, but the Russia-Ukraine crisis threw the plans off because stock markets were extremely volatile at the time.
