Anchor investors show “excellent” response to LIC’s IPO: Official
The Life Insurance Corporation (LIC)’s initial public offering (IPO) on Monday received an ‘excellent’ response from anchor investors, an official said.
The government is selling 22,13,74,920 LIC shares with a price range of Rs 902-949 per share, aiming to raise around Rs 21,000 crore. The issue will be open to registration for institutional and retail buyers May 4-9.
An official said the matter opened to anchor investor registration on Monday and received an ‘excellent’ response, an official said, adding that details of the bid price would be known later in the day. .
The sale of LIC shares will be the largest amount ever raised through an initial public offering on the Indian stock exchange. Such high fundraising was previously witnessed in the IPO of PayTM in 2021 at Rs 18,300 crore and Coal India in 2010 at Rs 15,200.
Of the more than 22.13 crore of LIC shares offered for sale, over 9.88 crore of shares were intended for qualified institutional buyers and more than 2.96 crore of shares for non-institutional buyers.
Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and contract holders.
While retail investors and LIC employees will receive a discount of Rs 45 per share, policy holders of the LIC bidding during the IPO will receive a discount of Rs 60 per share.
LIC will start trading on the stock exchange on May 17.
The embedded value of the LIC, which is a measure of the value of the consolidated shareholders in an insurance company, is fixed at around Rs 5.4 lakh as of September 30, 2021, by the international calculation firm Milliman Advisors.
Based on investor feedback, the market value of the government-owned LIC has been pegged at 1.1 times its embedded value or Rs 6 lakh.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)