LIC reaches its policyholders through SMS on IPO eve
NEW DELHI: Ahead of its going public (IPO), insurance leviathan LIC on Tuesday approached its insurance policy holders through SMS and other medium to inform them about the share sale.
The IPO of LIC opens for retail and institutional investors on Wednesday and will close on May 9.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The deal consists of an appointment for eligible staff members and insurance policy holders.
The retail financiers and eligible workers will also get a discount of Rs 45 per equity share and insurance policy holders will get a discount of Rs 60 per 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 noted on May 17.
“LIC submitted red herring prospectus(RHP) dt 26.4.22 with SEBI/Stock Exchanges for its IPO scheduling shares for qualified insurance policy holders. For information & & risks in purchasing LIC IPO and disclaimers, see RHP and links …,” stated the SMS sent out by the insurer to the insurance policy holders on their registered mobile numbers.
LIC has been informing about the IPO for a number of months through numerous channels consisting of print and television ads.
Earlier in the day, LIC informed it has gathered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions.
Anchor Investors’ (AIs) part (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share, the insurer stated in a morning filing to stock exchanges.
The country’s largest insurance company reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the dominating market condition.
Even after the lowered size of about Rs 20,557 crore, LIC IPO is going to be the most significant ever in the nation.
So far, the quantity mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at almost Rs 15,500 crore and Dependence Power (2008) at Rs 11,700 crore.
LIC was formed by combining and nationalising 245 private life insurance business on September 1, 1956, with a preliminary capital of Rs 5 crore.
Its product portfolio comprises 32 individual items (16 participating items and 16 non-participating products) and seven specific optional rider benefits. The insurance provider’s group product portfolio comprises 11 group items.
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 brand-new company premium, 71.8 percent in regards to the variety of private policies issued, and 88.8 per cent in regards to the variety of group policies issued.
Published at Tue, 03 May 2022 16:48:52 +0000