LIC IPO opens for retail financiers today: All you require to understand
BRAND-NEW DELHI: At Rs 20,557 crore, the Life Insurance Coverage Corporation‘s (LIC) going public (IPO), which opens for the retail investors today, is definitely the greatest till date in India.
It is also the very first to get in the market with Rs 20,000-crore or more concern, which, at its listing on May 17, will command a market capital of Rs 6 lakh crore– potentially the highest for any stock listing.
Ahead of its initial public offering for retail investors, the LIC on Tuesday approached its policyholders through SMS and other media platforms to inform them about the share sale.
At stake
The IPO provides 22.13 crore shares for a 3.5% stake worldwide’s 10th biggest insurance company by overall properties. Of these, half the shares are booked for qualified institutional buyers (QIB), 15% for non-institutional financiers and 35% will be offered to retail financiers. 15.81 lakh shares are scheduled for workers while 2.21 crore shares are booked for policy holders.
Who pays what
The IPO is priced in between Rs 902-949 per share with financiers enabled to bid in lot sizes of 15 shares and multiples thereof– which implies, at the upper end of the cost band, a financier requires to invest a minimum of Rs 14,235. Retail investors and staff members get a discount rate of Rs 45 per share while insurance policy holders are entitled to a discount rate of Rs 60 per share. The anchor investor part, which opened on Monday, has actually already been completely subscribed, raising Rs 5,620 crore.
Game of thrones
While the LIC IPO (at $2.7 billion) definitely dwarfs in size the Paytm IPO, which, at Rs 18,300 crore, is now relegated to the second area, it’s not the biggest in this fiscal year– which was LG Energy Option’s $10.8 billion IPO. It’s also a far cry from Saudi Aramco’s $25.6 billion IPO, which remains the world’s biggest till date. Also, enjoy out for Dependence Jio’s and Dependence Retail’s IPOs, which are expected to take away LIC’s crown as India’s largest IPO.
LIC: The insurance leviathan
LIC was formed by combining and nationalising 245 private life insurance business on September 1, 1956, with an initial capital of Rs 5 crore.
Its item portfolio consists of 32 private products (16 getting involved products and 16 non-participating products) and 7 specific optional rider advantages. The insurer’s group product portfolio consists of 11 group products.
As on December 2021, LIC had a market share of 61.6 per cent in terms of gross written premium, 61.4 percent in regards to new service premium, 71.8 percent in regards to the variety of private policies issued, and 88.8 percent in regards to the variety of group policies released.
(With inputs from agencies)
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Published at Wed, 04 May 2022 02:15:58 +0000