BANKING AND ECONOMY
The long-awaited Initial Public Offering (IPO) of Life Insurance Corporation's (LIC) will be open on May 2 for anchor investors and from May 4 to May 9 for the general public. The company plans to list on exchanges on May 17.
Once it opens, this will be the country’s biggest public offering ever, where the price of LIC’s share was available at a price band of ₹902-949, with a ₹60 discount for apiece to the eligible policyholders and a ₹45 discount for retail investors and employees. With this, the company will sell its 3.5% stake for ₹21,000 crores. The insurance company has a value of Rs.6 lakh crores.
There is an option for the government to increase the stake offer to 5%, by which the company can generate ₹30,000 crores from the sale of its shares. The LIC firm reserved around 59.29 million shares for the anchor investor portion.
Currently, the largest IPO generated were Paytm (₹18,300 crores in 2021), Coal India (₹15,500 crores in 2010), and Reliance Power (₹11,700 crores in 2008).
LIC is a strong corporation of India's people and its listing is part of the long-term strategic vision of the government and is meant for long-term value creation for shareholders. The stake sale was initially planned to be launched in March 2022, but it was delayed due to the Russia-Ukraine crisis, as the stock markets were highly volatile.
The Insurance company can sell the LIC's IPO until May 12, without having to file fresh papers with the Securities and Exchange Board of India (SEBI). But, if this was missed, then the LIC would have to file new papers for approval with SEBI.