India’s Largest IPO Of LIC To Open On May 4, Price Band ₹902-949 Per Share
Mumbai: Life Insurance Corporation’s (LIC) IPO will open on May 4 and close on May 9, the company confirmed on Wednesday. The price band will be ₹902-949, with a ₹60 discount for policyholders and ₹45 discount for retail investors and employees.
The report said there will be no greenshoe option for the IPO priced at Rs 902-949, with a discount of Rs 60 for policyholders. Employees and retail investors will be given a Rs 45 discount.
Apart from policyholders and shareholders, the shares will be allotted as follows: 50 per cent for Qualified Institutional Buyers (QIBs), 35 per cent for retail buyers and 15 per cent for non-institutional investors.
With the revised price band, the government now hopes to raise up to Rs 21,000 crore by selling a 3.5 per cent stake in LIC, which is a third of the original expectation and a billion less than the original estimate.
The Securities and Exchange Board of India on April 25 gave its approval to the updated draft red herring prospectus, which lists a 3.5 per cent stake sale instead of the five per cent mentioned in the previous draft paper. The revised DRHP was placed before the market regulator last week. The red herring prospectus will be submitted by April 27.
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