LIC IPO Announcement: If you are also planning to invest in LIC IPO, then here is a big update for you. According to a report by ABP Live, LIC has announced the price band for the IPO. If you are planning to invest in this IPO, then find out how much you need to invest. LIC company’s IPO is opening on 4th May and you can subscribe till 9th May. It is also important to note that anchor investors can bid on the IPO from May 2.
What will be the price band?
The company has raised Rs. The price band of 902-949 has been fixed. Customers will get 15 shares in one lot.
How much discount will you get?
Let us tell you that the company will give a discount of Rs 45 per share to retail customers and Rs 60 per share for policyholders.
How many shares will the company issue?
Let us tell you that the company will issue 22.13 crore shares through this IPO. The government is planning to raise around Rs 21,000 crore through this IPO. The government will sell around 3.5 per cent stake in the initial public offering (IPO).
Reduced IPO Size:
In February, the government had planned to sell 5 per cent stake or 316 crore shares in LIC. The documents in this regard were submitted to the Securities and Exchange Board of India (SEBI). However, market volatility due to the Russo-Ukraine war has affected the IPO plans. Last week, the government decided to reduce the size of the IPO to 3.5 per cent.
Rs.65,000 crore disinvestment target to raise Rs.
Sources said the government had also submitted documents to Sebi seeking exemption from the five per cent stake sale rule. As per SEBI rules Rs. Companies with a valuation of more than Rs 1 lakh crore need to sell five per cent stake in the IPO. The government has disbursed Rs. LIC’s IPO will be a major contributor to the target of raising Rs 65,000 crore.