Government insurance company started roadshow for Rs 65,400 crore issue, know what could be the price band

LIC IPO: The country’s largest insurance company LIC (Life Insurance Corporation of India) is preparing to raise Rs 65,400 crore from the issue. People with knowledge of this matter said that the issue price of the company could be fixed at Rs 2000-2100. In this, along with retail investors, employees and policyholders of the company can get some discount.

According to the information received so far, the policyholders and employees of the company can get 10% discount on the issue price. While retail investors can get a discount of up to 5%.

If LIC’s issue gets timely approval from the regulator, then this IPO will open on March 10 and may close on March 14.

The government has started a roadshow with investors for the issue. People with knowledge of the matter said that there may be a change in the pricing after seeing the potential of the investors and after talks with the government.

LIC’s anchor issue will open on March 9 and anchor investors will be allotted shares worth Rs 16,940 crore.

LIC IPO: Rs 21,000 crore lying with LIC, which has no claimants

According to the budget estimates, the Modi government has to raise Rs 63,000 crore before the end of March 2022.

Important dates related to LIC’s IPO

LIC’s issue will open: March 10

Issue will be closed: March 14

Issue Price: Rs 2,000-2,100 per share

Issue Size: 31,62,49,885 Shares

Offer for sale: 31,62,49,885 shares will be issued with a value of Rs 65,416.29 crore

Discount: Employees and policyholders will get 10% discount

Price Band Announced: 7 March

Anchor Investors Allotment: 9 March

Share Lots: 7 shares

Staff: 1.58 crore shares are in reserve, which will be available at Rs 1,890 after 10% discount

Policyholders: 3.16 crore shares are in reserve, which will be available after 10% discount at Rs 1,890

Anchor Investors: 8.06 crore shares are in reserve whose value is Rs 16,935.18 crore.

Qualified Institutional Bidders: 5.37 crore shares are in reserve whose value is Rs 11,290.12 crore

Non Institutional Investors: 4.03 crore shares are in reserve whose value is Rs 8,467.59 crore

Retail Investors: 9.41 crore shares are in reserve, valued at Rs 19,757.71 crore

Listed rival companies: SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company

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