Price Range Per Share Has Been Set For LIC IPO
The price range has been set at ₹902-949 per share for the Initial Public Offering (IPO) of Life Insurance Corporation (LIC). There is a discount price set at ₹60 for policyholders, as per CNBC TV18 which they know from government sources.
The government will be able to raise to ₹21,000 Cr with an upper range of the price. As per the news, there is a discount price of ₹40, which will be allotted to the retail and employees. The much anticipated initial public offering of the government-run insurance giant is set to open on May 4 and to close on May 9.
The offer for the anchor investors will likely open on May 2, as there is no greenshoe option available in the IPO.
Also read:
Finally LIC IPO To Open On May 4, Issue Size ₹21,000 Cr
Info Collected So Far
- Government is likely to raise $2.47 Billion by selling a 3.5 per cent stake in LIC. This is the third of the total expected amount and a billion short in terms of the original projection.
- In terms of a lower range of share price, the government will be able to generate $2.61 Billion.
- ₹6 lakh Cr is the LIC valuation amount now which much lower than the previously expected ₹17 lakh Cr.
- No greenshoe option is available in the LIC IPO.
- 60 per cent is reserved for the anchor investors out of the total of 50 per cent QIB allocations.
- The government has filed an updated DRHP to SEBI on April 25, which informs the selling of a 3.5 stake instead of the 5 per cent mentioned in the previous papers.
- This IPO will be the major part of the government’s plan to disinvest. The Government has a revised disinvestment target of ₹65,000 Cr for the fiscal year 2022-23.
- The IPO plan was deferred for a long time due to the insane market volatility caused by the Russia-Ukraine war.
