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LIC IPO To Open on 4 May: What Should Policyholders Know?

The issue opens on 4 May and will close on 9 May.

Updated
India
2 min read
LIC IPO To Open on 4 May: What Should Policyholders Know?
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Subscription for the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) will open on Wednesday, 4 May.

The LIC has fixed the price band for its Rs 21,000-crore mega IPO at Rs 902-949 per share.

The issue will close on 9 May.

Here's all you need to know about the LIC IPO.

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What will be the price band of LIC share?

The price band will reportedly be between Rs 902 and Rs 949 per share.

Investors can bid for shares in lot size of 15 shares, and multiples thereof.

What will be the size of the issue?

The issue size is Rs 20,557 crores, amounting to a 3.5 percent dilution.

Despite its reduced offering size, the issue will be the biggest in India, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on 27 April.

When can anchor investors start subscribing?

Anchor investors can start subscribing to shares of the insurance company on 2 May.

They are qualified institutional investors who invest before the IPO is made available to the public. Usually, an anchor investor makes an application of at least Rs 10 crore in the IPO.

Is there a reservation for policyholders?

Yes. 10 percent of the offer size has been reserved for policyholders with a discount of Rs 60 for all policyholders.

A total of 2.21 crore shares have been reserved for policyholders.

Those who want to apply under policyholder reservation should have linked their PAN number with LIC policy.

Is there a particular group of policyholders who are eligible?

Only those who bought their policy on or before 13 April 2022, the day LIC had filed its draft red herring prospectus with SEBI, will be eligible.

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What about employees?

LIC has reserved 0.7 percent of shares to employees and a discount of Rs 45 for them and retail investor.

When will shares be allotted to successful bidders?

This will happen on 12 May. However, the unsuccessful bidders will get their refund on the same day.

When will LIC be listed?

It will be listed on the stock exchanges on 17 May.

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