Mumbai: LIC IPO Price Band: There is big news for the investors waiting for the IPO of Life Insurance Corporation of India (LIC). Along with this, the price band of the IPO has also been revealed. An important meeting of the LIC board was held on Tuesday. It fixed the price.
How much is a share?
LIC has set a price target of Rs 902 to Rs 949 per share for its initial public offering (IPO). Giving this information on Tuesday, sources said that LIC will give a discount of Rs 60 to its policyholders. A discount of Rs 40 will be given to retail investors and employees.
IPO expected to open on May 4?
The IPO of the country’s largest insurance company Life Insurance Corporation (LIC) is expected to open on May 4. The issue is expected to close on May 9.
Government will sell 3.5 percent stake
In February, the government announced that it would sell its five per cent stake, or 316 crore shares, in the giant insurance company. The government has also submitted documents in this regard to the Securities and Exchange Board of India (SEBI). However, the Russo-Ukraine war has also affected market planning due to market volatility. Last week, the government had decided to reduce the issue size from five per cent to 3.5 per cent.
Government will get Rs 21,000 crore
Through the IPO, the government will sell 3.5 per cent stake in the public sector company LIC. So the government will get Rs 21,000 crore. LIC is valued at Rs 6 lakh crore based on IPO. Sources said the government has also submitted documents to Sebi seeking relief from the five per cent share sale rule.
As per SEBI norms, companies with a value of more than Rs 1 lakh crore are required to sell five per cent stake in the IPO.