LIC IPO: India's biggest IPO has opened - Here are 10 things you should know

By | Edited by Chandrashekar Srinivasan, New Delhi
May 04, 2022 11:49 AM IST

Much-awaited ₹21,000 crore LIC IPO has opened for the general public at a price band of ₹902 to ₹949 per equity share.

LIC IPO: Investors are at the edge of their seats as India's biggest public issue, the Life Insurance Company (LIC) initial public offering (IPO) opened to primary markets this morning. The Centre has fixed the LIC IPO price band at 902 to 949 per equity share. The LIC IPO has been valued at 21,000 crore. The public issue opened first to anchor investors on May 2 and it will remain open for bidding to the general public 4 till May 9, 2022.

The LIC IPO is all set to open for general public on May 4, Wednesday, and it will remain open for bidding till May 9. (HT)
The LIC IPO is all set to open for general public on May 4, Wednesday, and it will remain open for bidding till May 9. (HT)

Here's everything you need to know about LIC IPO:

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  1. The total value of LIC IPO is set at 21,000 crore, making it India's biggest public issue to date.
  2. Around 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders.
  3. Applicants can apply in lots - one LIC IPO lot comprises 15 LIC shares. An applicant can apply for a minimum of one and a maximum of 14 lots.
  4. As a result, the minimum amount required to apply for the LIC IPO is 14,235 ( i.e. 949 x 15). Click here to know how to apply for LIC IPO
  5. The government announced a 60 discount to the policyholders and 45 discount to LIC employees applying for the public issue.
  6. LIC policy holders' reservation portion will be 10 per cent of offer size, while employees will have five per cent of post-offer equity share capital reserved.
  7. The IPO was planned to be launched before March 31 but it was postponed due to poor market conditions amid the Russia-Ukraine war.
  8. The LIC IPO has received 13,000 crore worth of investment commitments from anchor investors – over twice the value of shares offered to such investors, three people with direct knowledge of the development said.
  9. The LIC shares are likely to be listed on BSE and NSE on May 17.
  10. The government, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of the five per cent listed in the previous Draft Red Herring Prospectus (DRHP). The mega IPO aims to provide a significant contribution to the government's disinvestment proceeds this fiscal. The Centre had pegged receipts at 65,000 crore - up from 13,531 crore in the last fiscal.

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