Anchor investors have shown good response to LIC’s IPO, said an official
New Delhi:
The initial public offering (IPO) of Life Insurance Corporation (LIC) on Monday received an ‘excellent’ response from anchor investors, an official said.
The government is selling 22,13,74,920 shares in LIC at a price band of Rs 902-949 per share, aiming to raise around Rs 21,000 crore. The issue will be open for subscription to institutional and retail buyers from May 4-9.
The issue opened for anchor investor subscription on Monday and witnessed “excellent” response, an official said, adding that the details of price bids would be known later in the day.
The LIC share sale will be the largest ever raised through an Initial Public Offering in the Indian stock market. Earlier such high fund raising was seen in Paytm’s IPO of Rs 18,300 crore in 2021 and Coal India for Rs 15,200 crore in 2010.
Out of over 22.13 crore shares of LIC, more than 9.88 crore shares are reserved for qualified institutional buyers and over 2.96 crore shares are reserved for non-institutional buyers.
Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.
While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policy holders who bid in the IPO will get a discount of Rs 60 per share.
LIC will start trading on stock exchanges from May 17.
The embedded value of LIC, which is a measure of the value of consolidated shareholders in an insurance company, was pegged at around Rs 5.4 lakh crore by international actuarial firm Milliman Advisors as of September 30, 2021.
Based on investor feedback, the market value of state-owned LIC has been pegged at 1.1 times its embedded value, or Rs 6 lakh crore.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)