New Delhi/Mumbai, April 27 (H.S.). There is big news for investors awaiting the country’s largest Initial Public Offering (IPO). Public sector insurance company Life Insurance Corporation of India (LIC)’s IPO launch date has been announced.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), told a press conference on Wednesday that the IPO of LIC will open for investment on May 4, 2022. Its size has been kept at Rs 21 thousand crore. Pandey said that the price range for LIC IPO has been fixed at Rs 902-949 per share. He said that this IPO is in the form of a sale offer. Through this offer, the government will sell its 22.13 crore shares i.e. 3.5 percent stake in LIC.
Tuhin Kant Pandey further said that the government will raise Rs 20,557 crore from LIC’s IPO. He said that this mega IPO will be opened for anchor investors on May 2, while the issue for subscription will be open from May 4 to May 9, 2022. DIPAM Secretary informed that retail investors and eligible employees will get a discount of Rs 45 per share in the IPO, while it has been decided to give a discount of Rs 60 per share to the policy holders.
It is noteworthy that earlier in February, the government had planned to sell its 5 percent stake i.e. 316 million shares in the country’s largest insurance company LIC. Due to the Russia-Ukraine crisis, the issue size has been reduced to Rs 21,000 crore. Despite this, LIC’s IPO will be the biggest issue in the country.