LIC IPO: India’s biggest IPO opens tomorrow – Here are 10 things you should know

LIC IPO: Investors are at the edge of their seats as India’s biggest public issue, the Life Insurance Company (LIC) initial public offering (IPO) hits primary markets on Wednesday. The Centre has fixed the LIC IPO price band at ₹902 to ₹949 per equity share. The LIC IPO has been valued at ₹21,000 crore. The public issue opened first to anchor investors on May 2 and it will remain open for bidding to the general public from May 4 till May 9, 2022.

Here’s everything you need to know about LIC IPO:

1. The total value of LIC IPO is set at ₹21,000 crore, making it India’s biggest public issue to date.
2. Around 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders.
3. Applicants will be able to apply in lots, where one LIC IPO lot comprises 15 LIC shares. An applicant can apply for a minimum of one and a maximum of 14 lots.
4. As a result, the minimum amount required to apply for the LIC IPO is ₹14,235 ( i.e. ₹949 x 15). Click here to know how to apply for LIC IPO
5. Market observers told LiveMint that the LIC IPO grey market premium (GMP) – the price traded in the grey market before the IPO listing process – today is ₹85, as compared to ₹69 yesterday.
6. The government announced a ₹60 discount to the policyholders and ₹45 discount to LIC employees applying for the public issue.
7. LIC policy holders’ reservation portion will be 10 per cent of offer size, while employees will have five per cent of post-offer equity share capital reserved.
8. The IPO was planned to be launched before March 31 but it was postponed due to poor market conditions amid the Russia-Ukraine war.
9. The LIC IPO has received ₹13,000 crore worth of investment commitments from anchor investors – over twice the value of shares offered to such investors, three people with direct knowledge of the development said.
10. The LIC shares are likely to be listed on BSE and NSE on May 17.

The Government of India, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of the five per cent that was listed in the previous Draft Red Herring Prospectus (DRHP). The mega IPO aims to provide a significant contribution to the government’s disinvestment proceeds this fiscal. The Centre had pegged receipts at ₹65,000 crore – up from ₹13,531 crore in the last fiscal.