New Delhi | Jagran Business Desk: The initial public offering of the Life Insurance Corporation (LIC) - the biggest-ever IPO of India - opened for subscription for retail and institutional investors on Wednesday. Through the IPO, whose price band has been fixed at Rs 902-949 per equity share, the government aims to generate nearly Rs 21,000 crore by diluting its 3.5 per cent stake.
The insurance behemoth has said that policyholders will get a discount of Rs 60 per equity share. Likewise, retail investors and eligible employees will be given a discount of Rs 45 per equity share.
The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17.
LIC has cornered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions. Anchor Investors (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.
LIC reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition. Even after the reduced size of about Rs 20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country.
So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.
Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer's group product portfolio comprises 11 group products.
As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or GWP, 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued.
(With PTI inputs)
Posted By: Aalok Sensharma