Mumbai: State-run insurance behemoth Life Insurance Corporation of India’s (LIC) initial public offering (IPO) at Rs 21,000 crores will be India’s biggest IPO so far, even after the central government’s decision to sell the stock to 3.5 per cent earlier. 5 per cent. The price band is set at Rs 902 to Rs 949 per equity share.
Thoughts are for a very high demand LIC shares, the government has roped in anchor investors – an IPO of a state-run company for the first time ever. The shares will be allotted to anchor investors on May 2.
Around 6.48 crore policyholders of the state-run insurance behemoth have updated their PAN to participate in the Rs 21,000-crore mega IPO that opens on May 4 and closes on May 9.
The company has decided to reserve 10 per cent of its shares under the policyholder reserve portion.
The policyholders will get a discount of Rs 60 per share, while the employees and retailers will be entitled to a lower discount of Rs 45.
Speaking to this newspaper, MR Kumar the chairman of LIC said, “Around 6.48 crore policyholders have updated their PAN but we do not know if they have a demat account.” PAN with linking policy for last date February 28.
“There is enough demand and we have a strong anchor book line up,” said Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), addressing concerns about the recent exit of foreign investors from the Indian equity market. .
Mr Pandey said, “We went ahead of the market demand for the LIC IPO, the market has stabilized since the previous peak.” volatility seen in March, strong domestic inflows and LIC’s financial performance. We know that even if we have constraints we can pull it off. ” He added, “Markets are so integrated now to events worldwide.”
“India is the only market that can afford and offer an issue of this size. No other equity market has seen an issue of this size in the last 3-4 months, ”said one of the merchant bankers of LIC.
Out of the 22.13 crore shares that are for sale, the life insurance behemoth will reserve approximately 2.21 crore, or 10 per cent, for policyholders. Another 15.8 lakh shares, or 0.7 per cent, of the employees’ quota.
Bids can be made in multiples of 15 equity shares. The maximum bid amount under policyholder, retail and employee quotas cannot exceed Rs 2 lakh (net of discount). However, if you are a retail investor, who is a policyholder as well as an employee, you can bid under all categories separately, so that the aggregate limit will be Rs 6 lakh.
