LIC IPO: This is LIC 3.0 says chairman MR Kumar
- The time has come for the LIC to be listed, said MR Kumar
- LIC IPO will open from May 4 to May 9 to the general public
- The price band for the issue is fixed at Rs 902-949 per share
Insurance behemoth Life Insurance Corporation of India (LIC) is all set to hit the primary market next month. LIC chairman MR Kumar said the time has come for LIC to be listed. “I believe all LICians will work together to make it a huge success, and from now on we will call it LIC 3.0," said MR Kumar.
"LIC struggled in the first two decades to sell insurance in India and it gained momentum in the 70s and 80s. That was LIC 1.0. Then it adapted to the competition, which was LIC 2.0. And now this is LIC 3.0", added Kumar.
LIC’s public issue will open from May 4 to May 9 to the general public. For the anchor investors, the issue opened on May 2.
The price band for the issue is fixed at Rs 902-949 per share, at the face value of Rs 10 each.
For policyholders, 10% of the LIC IPO is reserved and they will get a discount of Rs 60 per share on the issue price. Retail investors and employees will be given a discount of Rs 45 per share. The employee reservation portion will be 5% of the post-offer equity share capital.
More than 9.88 crore shares are reserved for Qualified Institutional Buyers (QIBs) and more than 2.96 crore shares for non-institutional buyers.
Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter.
The issue will be managed by 10-book running lead managers including Kotak Mahindra Capital, SBI Caps, ICICI Securities, Goldman Sachs, JM Financial, Axis Capital, JP Morgan, Nomura, Citigroup, and Bank of America Securities.
The allotment of shares to the Demat account of bidders will happen by May 16, after which LIC would commence trading of equity shares in the stock exchanges and list “on or about May 17”.
On April 23, the LIC board approved a revised IPO issue size to 3.5% from 5%. The government will now sell 3.5% of its stake in LIC for Rs 21,000 crore, valuing the company at Rs 6 trillion.