India’s largest insurer has opened to list on stock exchanges for IPO in May. Claiming to be the largest ever IPO so far the govt is selling over 22.13 crore shares in LIC at a price band of Rs 902-949 apiece in the initial public offering, which opens on May 4 and closes on May 9.
As per the final papers filed with Sebi, the allotment of shares to the Demat account of bidders will happen by May 16, post which LIC would commence trading of equity shares in the stock exchanges and list “on or about May 17”.
While anchor investors will bid for the share sale on May 2, the issue would open for subscription of institutional and retail buyers on May 4 and close on May 9.
With this IPO, the centre has decided to sell a 3.5 per cent stake in the insurance giant by selling RS 22.13 crore shares, 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. Over 9.88 crore shares are reserved for Qualified Institutional Buyers (QIBs) and over 2.96 crore shares for non-institutional buyers. While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policyholders bidding in IPO would get a discount of Rs 60 a share.
This is by far the largest IPO after last year when Paytm sold Rs 18,300 crore.