The government has priced the LIC issue at Rs. 949 per share; Policyholders, retail investors get discounts


New Delhi: The government has raised the issue price of LIC shares to Rs. 949, which is the upper end of the IPO price band, giving the exchequer about Rs. 20,557 crore.
Following the initial share sale offer, the country’s largest insurer will list itself on the stock exchange on May 17, which was almost three times oversubscribed from the size of the issue.
The initial public offering (IPO) of Life Insurance Corporation (LIC) closed on May 9 and the shares were allotted to bidders on May 12. The government had sold over 22.13 crore shares or 3.5 per cent stake in LIC through IPO. Rs. 902-949.
Retail investors and eligible LIC employees are entitled to an equity share of Rs. A discount of Rs 45 per share was offered, while policyholders were offered a discount of Rs. 60 discount was received.
According to the prospectus filed by LIC on May 12, the offer price of the share sale was Rs. 949 has been determined.
LIC policyholders and retail investors are entitled to Rs. 889 and Rs. Shares have been found at the price of 904.
The shares were allotted after applying discounts applicable to policyholders and retail investors.
The sale of shares cost the government about Rs. 20,557 crore were received.
This LIC IPO – India’s largest ever – closed with almost 3 times subscription, taken mainly by retail and institutional buyers, but participation of foreign investors remained muted.
So far, the amount raised from Paytm’s IPO in 2021 is the largest ever at Rs. 18,300 crore, followed by Coal India (2010) at around Rs. 15,500 crore and Reliance Power (2008) Rs. 11,700 crore.
LIC last month reduced the size of its IPO to 3.5 per cent from the previously fixed 5 per cent due to the current chaotic market conditions. The LIC IPO is by far the largest initial public offering in the country, despite a reduction of over Rs 20,557 crore.
The sale of the stock was initially scheduled to hit the markets in March. But uncertainty in stock markets due to the Russia-Ukraine war pushed the issue into the current financial year, which began in April.
Revenue from LIC issue is Rs. About one-third of the Rs 65,000 crore disinvestment target.
When he raised Rs. 3,000 crore, after handing over control of Pawan Hans to Star 9 Mobility Pvt. Ltd., Big Charter Pvt. Ltd., Maharaja Aviation Pvt. Ltd. and a consortium of Almas. 211.14 crore is likely to come. Global Opportunity Fund SPC by June.
In the last financial year, the government disbursed Rs. 78,000 crore against the revised scale down target of Rs. 13,531 crore were collected.

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