488442-licupdate

Mumbai: LIC’s IPO is coming soon. This will be the biggest IPO in the country. It will be open for investment on 4th May and will be closed on 9th May. If you are also thinking of investing in this IPO, then you should know some things in advance.

Preparing to raise Rs 21,000 crore

The price band of LIC’s IPO is Rs. 902 to 949 would be in between. The insurance company is preparing to raise Rs 21,000 crore through this IPO. For this, 3.5 per cent stake will be sold.

Reservation in IPO

The total issue size of LIC’s IPO will be 22.13 crore shares. Of this, 10 per cent or 2.21 crore shares are reserved for policyholders. 0.15 crore shares will be reserved for employees.

 

50% share for QIB

Of the remaining shareholders after reservation of staff and policyholders, 50% (for institutional investors) will be for QIBs, 35% for retail investors and 15% for NIIs. either

lot size

A lot of LIC will have 15 shares with a price band of Rs 902 to Rs 949. That is, you have to invest at least Rs 13,530.

 

discount on ipo

The IPO offers a discount of Rs 45 for the retail investor and Rs 60 for the policyholder. This means that a policyholder can make a profit of up to Rs 900 in 15 shares.

Evaluation

The value of LIC for the IPO is Rs 6 lakh crore. Earlier, the government had planned to raise Rs 30,000 crore by selling 5 per cent stake. But now only 3.5 per cent stake will be sold.

Source