LIC sets price band at Rs 902-949 per share for Rs 21,000 crore IPO
MUMBAI: Nation’s biggest life insurance provider LIC on Wednesday set the cost band at Rs 902-949 per share for its Rs 21,000 crore going public (IPO), which will open for subscription on May 4.
At the upper end of the price band the federal government will gather around Rs 21,000 crore.
With this IPO, which is through an offer-for-sale (OFS) route, the government is seeking to divest its 3.5 per cent stake in the insurance company by offering 22.13 crore shares.
Speaking on the event, Department of Investment and Public Property Management (DIPAM) Secretary Tuhin Kanta Pandey stated listing of LIC is part of the long-term strategic vision of the federal government and will highly enhance the value of the corporation in the long-run.
“This (LIC IPO) is right sized, considering the capital market environment and will not crowd out capital supply offered the existing market environment,” Pandey stated here on Wednesday.
Even after the minimized size of about Rs 20,557 crore, LIC IPO is going to be the greatest preliminary public offering ever in the nation, he stated.
In February, the government had planned to offer a 5 per cent stake in the business.
“The decision to list now has actually considered the combination of several elements, including market demand, stabilizing market conditions, reducing volatility, domestic flows and the corporation’s monetary efficiency,” he stated.
Pandey stated the marketplace is undoubtedly taking advantage of strong structural tailwind provided issues in other markets.
The marketplace has actually recuperated from temporary shock due to worldwide geopolitical occasions seen earlier.
In the IPO, the retail financiers and eligible workers will get a discount rate of Rs 45 per equity share and insurance policy holders will get a discount rate of Rs 60 per equity share.
The concern will open for subscription on May 4 and to close on May 9. The bid lot for the issue would be 15.
Published at Wed, 27 Apr 2022 07:34:50 +0000