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Now, Subscribe to India’s largest IPO, Life Insurance Corporation (LIC): 10 things to know…

Life Insurance Corporation (LIC), India’s largest initial public offering (IPO), opened for subscription today. The pricing range for the IPO is Rs 902-949, with policyholders getting a Rs 60 discount and retail investors and workers getting a Rs 45 discount. The government’s 3.5 percent stake in LIC will be sold in an IPO on May 9 in order to generate Rs 205 billion.

Reserved LIC IPO Portions
The IPO is entirely a government offer-for-sale of 221,374,920 equity shares, with the government getting all proceeds. Out of the total number of shares on the block, up to 1,581,249 are allocated for workers and up to 22,137,492 are held for policyholders. Qualified institutional purchasers will get 50% of the net offer, while retail investors would receive 35% and non-institutional investors will receive 15%.

Here are a few things you should be cautious of:

1: The LIC IPO has a price range of Rs 902-949 per equity share.

2: LIC policyholders would receive a Rs 60 discount per equity share, while retail investors and workers will receive a Rs 45 discount.

3: At the higher end of the offering price, buyers can bid for a minimum of 15 shares (one lot) for Rs. 14,235.

4: On May 17, LIC shares will be listed on stock markets.

5: The government expects to gain Rs 210 billion by dissolving a 3.5 percent stake in LIC.

6: An IPO would have the highest valuation in Indian market history. Previously, the largest fundraises were seen in the Paytm IPO last year, which collected Rs 183 billion, and the Coal India IPO in 2010, which garnered Rs 152 billion.

7: The LIC has notified policyholders of the stock sale via SMS and other means.

8: For several months, LIC has been informing the public about the IPO through a variety of channels, including print and television ads.

9: Due to present market conditions, the country’s top insurer reduced the size of its IPO from 5% to 3.50%.

10: On September 1, 1956, LIC was formed by the merger and nationalization of 245 private life insurance firms, with an initial capital of $1.5 billion.


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