Life Insurance Corporation of India's upcoming share sale via initial public offering is witnessing huge demand for its shares from anchor investors ahead of the IPO which is reported to open on May 4, newspaper Hindustan Times reported citing sources. The LIC IPO has received investment commitments worth Rs 13,000 crore more than twice the value of shares reserved for anchor investors, the report added quoting people directly aware of the matter.
The total commitment from over 100 global and domestic investors is more than Rs 6,300 crore allotment size to anchor investors. However, a formal anchor book allotment is yet to begin.
The much awaited LIC IPO, which was to open for subscription last financial year, was delayed due to geopolitical tensions due to Russia-Ukraine war, soaring commodity prices and monetary tightening by major central banks.
As per the report LIC shares will be priced at Rs 949 per share at the lower end of the price band.
Meanwhile, news channel CNBC TV18, citing sources has reported that the LIC IPO will begin from May 4.
LIC's embedded value, which is a measure of the consolidated shareholder’s value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
The LIC is expected to raise Rs 21,000 crore by diluting 3.5 per cent stake in the insurance behemoth valuing it at Rs 6 lakh crore.
In February, LIC had filed draft papers with Sebi wherein it had said that the government will sell 5 per cent stake or 31.6 crore shares in the state-run insurer.
However, the IPO plans faced headwinds due to the ongoing volatility in stock markets due to Russia-Ukraine war, forcing the government to cut the issue size to 3.5 per cent.