LIC IPO: Biggest IPO In India Despite Reduced Size

LIC launch has took off and while the country's leading state-run insurer LIC has cut the offer size by about 60%- it remains to be the biggest initial public offer (IPO) launch. In the offer, the government of India will be selling 221.4 million shares of LIC in the price band of Rs. 902-949 each as per the final prospectus filed with exchanges.

LIC IPO: Biggest IPO In India Despite Reduced Size

In the press conference, the public insurer said it will open its public issue for subscription on May 4 and the same will close on May 9. From the issue which is a stake sale of 3.5% in the behemoth-the company plans on raising Rs. 20,557.23 crore, much lower than the earlier projection of approximately Rs. 60,000 crore.

So, even after the reduction in size owing to the market conditions, it is the largest ever IPO in the country. The IPO values the company at Rs. 6.07 lakh crore.

Investors can apply for a lot size of 15 shares, and multiples thereof. There is an employee reservation of 1.58 crore shares while 2.21 crore shares are reserved for policyholders. Retail and employees will get Rs 45 discount, while policyholders will get Rs 60 discount.

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