LIC IPO: Details an investor needs to know, issue size, dates & GMP

LIC IPO details for investment: Insurance behemoth Life Insurance Corporation of India (LIC) initial public offering(IPO) is ready to test the mettle of Dalal Street in what promises to be a volatile week.Here are key things an investor should know before subscribing to the issue.

LIC IPO is open for subscription from May 4-9, and the price band for the govt's stake sale has been been fixed at Rs 902-949 per equity share of face value Rs 10 each.

However, LIC is offering a discount of Rs 60 to its eligible policyholders and a discount of Rs 45 will be offered to retail investors and employees.

LIC IPO can be subscribed to in lots of 15 shares, so investors can apply for a minimum of one lot and the maximum you can bid for as an individual bidder is 14 lots which is a maximum of 210 shares.

So if you are applying for the LIC IPO the minimum investment is Rs 14,235 for one lot whereas maximum amount allowed for single retail investor is Rs 1.99 lakh.

The LIC IPO share sale is an offer-for-sale (OFS) of up to 22.13 crore equity shares, which translates to a 3.5% stake sale from the government. The listing is likely to be on May 17.

About Life Insurance Corporation(LIC)

It is the largest company in the Indian insurance space with a market share of above 61.6 per cent in terms of premiums and 61.4 per cent in new business premium as of December 31, 2021.

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

The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity and pension products.

Should you subscribe?

Brokerages have given thumbs up to the issue citing fair valuation and discounts offered by LIC to retail investors, policyholders and employees.

Given the growth prospects for the pension/ annuity segment and the company’s position as the market leader in the insurance sector, the company’s valuation will be at par with its private peers. As a result, brokers recommend subscribing to the initial public offer(IPO) for listing as well as long term gains.