The Life Insurance Corporation (LIC) public issue offering, the largest in India, will open on May 2 for the public, and on May 4 to May 9 for investors, according to government sources.
The issue is likely to open for subscription on May 4 and is expected to close on May 9. Major investors can subscribe for shares of the insurance company on May 2nd.
The long-awaited initial public offering (IPO) of the insurance giant will be in the ₹ 902-949 price range, with the government likely to give a Rs 60 discount to policyholders and a Rs 45 discount for retail investors and employees, the source added.
On Saturday, the LIC board approved a reduction in the size of its IPO issue to 3.5 percent from 5 percent, sources said.
The government is now expected to sell its 3.5 per cent stake in LIC for ₹ 21,000 crore.
Previously, the government expected to raise more than 60,000 crore by selling about 31.6 crore or 5 per cent stake in life insurance firms to meet the investment reduction target of 78,000 crore in 2021-22.
And according to a draft prospectus filed and approved by the capital market regulator Securities and Exchange Board of India, SEBI, for the sale of 5 per cent stake, the employee reservation share is not expected to exceed 5 per cent of the post -offer equity Shares. capital, and the policyholder’s booking share must not exceed 10 percent of the offer size.
The sale of the stake was initially planned to launch in March 2022, but the Russia-Ukraine crisis thwarted the plan because the stock market was highly volatile.