The country's largest ever Initial Public Offering (IPO), Life Insurance Corporation of India (LIC) opened for subscription for retail and institutional investors today.
The government aims to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth.
The LIC initial public offering (IPO), now open for retail and institutional investors, is set to close on May 9.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders.
The retail investors and eligible employees will get a discount of Rs 45 per equity share, and policyholders will get a discount of Rs 60 per equity share.
The shares are likely to be listed on May 17.
LIC has cornered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions. Anchor Investors (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.
The government had in February planned to sell 5 per cent stake or 31.6 crore shares of LIC and had filed draft papers with market regulator SEBI.
However, it's IPO size was reduced to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition.
Even after the reduced size of about Rs 20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country.
So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
(With inputs from PTI)