LIC IPO to open on May 4; price band, issue size, other details here

Updated : Apr 26, 2022 08:29
|
EJ Biz Desk

The country's largest insurer Life Insurance Corporation (LIC) will open its initial public offering (IPO) on May 4 and close on May 9.

The government will sell a 3.5 percent stake in state-owned LIC to fetch Rs 21,000 crore through the IPO. The IPO values LIC at Rs 6 lakh crore.

LIC IPO price band could be set at Rs 954-960 per share. 

Also read/watch | LIC IPO downsized: Size, price, value all see bit cuts

The government had in February planned to sell a 5 percent stake or 31.6 crore shares in the insurance behemoth and had filed draft papers with Sebi. However, the IPO plans faced headwinds from the ongoing market volatility due to the Russia-Ukraine war. Hence, last week, the government decided to lower the issue size to 3.5 percent.

LIC IPO would contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal. The government has pegged disinvestment receipts at Rs 65,000 crore in the current financial year, up from Rs 13,531 crore mopped up last fiscal.

Also read/watch | Explained: Why Indonesia ban and not Ukraine war is India's biggest problem

LIC IPOLICIPO

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