Connect Gujarat

LIC IPO set to open on May 4

LIC’s IPO will open for subscription from 4 May to 9 May

LIC IPO set to open on May 4

The much-awaited initial public offering (IPO) of the Life Insurance Corporation of India is likely to open for subscription from 4 May.

Last month, Securities and Exchange Board of India (SEBI) approved the initial public offering proposal of LIC.

The company has filed the Draft Red Herring Prospectus with the market regulator.

LIC's IPO will open for subscription from 4 May to 9 May

The government, which wholly owns the insurance behemoth, plans to sell a 3.5 per cent.

LIC has cut the size of IPO from 5 per cent to 3.5 per cent due to the market condition.

The LIC IPO will fetch ₹21,000 crore to the exchequer.

The government had initially wanted to list LIC in the last financial year that ended March 31 but had to delay the sale after the Russia-Ukraine war triggered a market rout.

LIC IPO has received ₹13,000 crore worth of investment commitments from anchor investors, more than twice the value of shares offered to such investors, sources reported.

LIC is valued at ₹6 trillion, which is just 1.1 times its original embedded value of ₹5.39 trillion, according to the revised estimates of the government.

A proposal to reduce the size of LIC's IPO to 3.5 per cent from 5 per cent proposed in its draft red herring prospectus (DRHP) was tabled and approved at a board meeting held on Saturday.

Reservations for policyholders and employees, and discounts, issue dates and issue price will be known by Wednesday, PTI reported.

Next Story
Share it