LIC IPO: Issue price fixed at Rs 949 per share, listing on May 17
- Government has set the issue price of LIC shares at Rs 949 per share
- LIC IPO closed on May 9 and was subscribed 2.95 times
- Price band for the IPO was fixed between Rs 902-949 per share
The Union government has set the issue price of LIC shares at Rs 949 per share, the upper end of the IPO price band, ahead of the listing of India’s largest life insurance company on May 17, reported PTI.
The policyholder of the LIC and retail investors will get shares at a discounted price of Rs 889 and Rs 904 per share, respectively. The Initial Public Offering (IPO) of Life Insurance Corporation (LIC) closed on May 9 and shares were allocated to the bidders on May 12.
The LIC IPO saw high demand from domestic investors. It was subscribed 2.95 times. However, foreign investors did not respond well to the issue. The issue received the highest number of applications in the history of Indian markets. The government raised around Rs 20,557 crore from the share sale.
The government sold more than 22.13 crore shares or a 3.5% stake in LIC through the IPO. The price band for the LIC IPO was fixed between Rs 902-949 per share.
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The retail investors and LIC employees were offered a discount of Rs 45 per equity share while policyholders received a discount of Rs 60 per share.
According to the prospectus filed by LIC on May 12, the offer price of the IPO has been fixed at Rs 949 per equity share. Shares were allocated to policyholders and retail investors after applying the discount applied to them.
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Last month, LIC reduced its IPO size to 3.5% from 5% decided earlier due to the prevailing volatile market conditions. Even after the reduced size of around Rs 21,557 crore, LIC IPO is the biggest initial public offering ever in the country. So far, the amount raised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India in 2010 at nearly Rs 15,500 crore and Reliance Power in 2008 at Rs 11,700 crore.
LIC will list on the stock exchanges and its shares will start trading from May 17.