The issue is set to open on May 2 for anchor investors and will open for subscription on May 4 and close on May 9
Retail investors and employees of LIC are also likely get a discount of Rs 45 on subscribing to the shares of LIC
New Delhi:
The government has set a price band for the Life Insurance Corporation (LIC) initial public offering (IPO) of Rs 902 to 949 ($11.77 to $12.39) per equity share.
The issue is set to open on May 2 for anchor investors and will open for subscription on May 4 and close on May 9, the government source said.
Also, the government plans offer a Rs 60 discount to LIC’s 29 crore policyholders in the company’s IPO.
Retail investors and employees of LIC are also likely get a discount of Rs 45 on subscribing to the shares of LIC.
The government is looking to sell a 3.5 per cent stake or 22.13 crore shares in the state-owned insurance behemoth for mobilising Rs 21,000 crore through the IPO.
Media report suggests shares of LIC are already being quoted with a premium of 5-7% in the grey market. The shares are being in demand at Rs 1,000 apiece as compared to IPO price of Rs 950.
LIC management and the investment bankers will embark on road shows in six cities across India – including Mumbai, New Delhi, Bengaluru, Ahmedabad, Rajkot, Kolkata – where they will be meeting potential investors and analysts starting on Wednesday, one of the sources said.
The road shows are likely to be concluded by the end of this week.