Chennai: The initial public offering (IPO) of the Life Insurance Corporation (LIC) opened for investors today and will remain open to subscription till May 9. LIC IPO is expected to be a landmark public issue in the history of the Indian capital market and is poised to be India`s biggest IPO till date.
The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.
The anchor book opened on Monday.
Insurance behemoth has said that it has garnered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions ahead of its mega initial public offering (IPO).
Anchor Investors’ (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share, the insurer said in an early morning filing to exchanges. Out of the allocation of about 5.9 crore shares to AIs, 4.2 crore shares (71.12 per cent) were allocated to 15 domestic mutual funds through 99 schemes, the filing said. Besides, investment was made by some domestic insurance companies and pension funds.
Some of the prominent names in this category included ICICI Prudential Life Insurance, SBI Life Insurance, Kotak Mahindra Life Insurance, PNB Metlife Insurance, SBI Pension Fund and UTI Retirement Solutions Pension Fund Scheme.
LIC would get listed and start trading on the stock exchanges on May 17.
The government is selling over 22.13 crore shares in LIC at a price band of Rs 902-949 a piece in the initial public offering.
While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policy holders bidding in IPO would get a discount of Rs 60 a share. Policyholders planning to buy LIC IPO shares can invest up to Rs 2 lakh.
The limit for the retail category is also set at Rs 2 lakh. Policyholders will get a discount of Rs 60 per equity share, while retail investors and employees will get a discount of Rs 45 on each share.