LIC sets IPO price band at ₹902-949 per share
Premium- The LIC IPO price band has been fixed with ₹60 discount for policyholders and ₹45 discount for retail investors and employees
India's Life Insurance Corporation (LIC) on Tuesday fixed a price band of ₹902-949 a share for its ₹21,000-crore initial public offering (IPO), according to reports.
The LIC IPO price band has been fixed with ₹60 discount for policyholders and ₹45 discount for retail investors and employees.
The government is looking to sell a 3.5% stake in the state-owned insurance behemoth and the IPO will open on 2 May for anchors and for other investors from 4 to 9 May.
The issue size is expected to be worth ₹21,000 crore, valuing the country's largest insurer at ₹6 lakh crore.
The Centre had earlier planned to hold the public issue before 31 March this year, but delayed the move after the breakout of the Russia-Ukraine war.
LIC management and the investment bankers will embark on road shows in six cities across India – including Mumbai, New Delhi, Bengaluru, Ahmedabad, Rajkot, Kolkata – where they will be meeting potential investors and analysts starting on Wednesday.
The road shows are likely to be concluded by the end of this week. In the last two years with the coronavirus pandemic, physical road shows had come to a grinding halt but now with infections down the management has decided to re-start the process.
Apart from this, online road shows covering investors across other regions will also continue.
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The national capital has reportedly already halved its fundraising goal for LIC's IPO to ₹300 billion ($3.9 billion), having had to cut its valuation estimates after feedback from investors.