The price band for the much-awaited Initial Public Offering (IPO) of India's largest insurance company, Life Insurance Corporation of India (LIC), has been set at Rs 902-Rs 949 per share.
A discount of Rs 45 has been set for retail and employees, while the bid lot size has been fixed for 15 shares per lot, government sources said on Tuesday.
According to the sources, LIC has decided to give a discount to policyholders of the company. "A discount of Rs 60 per share has been set for the policyholders of LIC."
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On April 23, 2022, the LIC board gave its nod to cut down the issue size to 3.5 percent from 5 percent due to the market condition. A proposal to reduce the size of LIC's IPO to 3.5 percent from 5 percent proposed in its draft red herring prospectus (DRHP) was tabled and approved at a board meeting held on Saturday.
A total of 22.13 crore shares will be offered in this IPO. Out of the total shares, 10 percent or 2.21 crore shares are reserved for the policyholders.
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LIC's IPO is to open on May 4 and close on May 9. Last month, market regulator Securities and Exchange Board of India (SEBI) approved the initial public offering proposal of the Life Insurance Corporation of India (LIC).
The company has filed the Draft Red Herring Prospectus with the market regulator Securities and Exchange Board of India (SEBI). It has time until May 12 to launch the IPO. If it is not done by May 12, the company would be required to file fresh papers with the market regulator.
The government had initially wanted to list LIC in the last financial year that ended March 31 but had to delay the sale after the Russia-Ukraine war triggered a market rout.
