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NEW DELHI: The price band for Life Insurance Corporation‘s (LIC) mega initial public offering (IPO) has been set at Rs 902-949, news agency Reuters reported quoting sources.
The issue is likely to open on May 4 and close on May 9.
According to reports, the offer will be available at Rs 60 discount for policyholders and Rs 45 for retail investors and employees.
Further, the sale is likely to open on May 2 for anchor investors.
After a reservation for policyholders and shareholders, the remaining shares will be allocated in the ratio of 50 per cent to qualified institutional buyers (QIB), 35 per cent for retail and 15 per cent for non-institutional investors.
Out of the QIB’s portion, around 60 per cent will be reserved for anchor investors, the reports said.
The IPO, through which the government will sell 3.5 per cent stake in state-owned Life Insurance Corporation (LIC), will fetch Rs 21,000 crore to the exchequer.
The IPO values LIC at Rs 6 lakh crore.
The government had in February planned to sell 5 per cent stake or 31.6 crore shares in the insurance behemoth and had filed draft papers with Sebi.
However, the IPO plans faced headwinds from the ongoing market volatility due to the Russia-Ukraine war.
LIC management and investment bankers will embark on road shows in six cities across India – Mumbai, New Delhi, Bengaluru, Ahmedabad, Rajkot, Kolkata – where they will meet potential investors and analysts starting on Wednesday, one of the sources said.
The road shows are likely to be concluded by the end of this week. In the last two years of the Covid-19 pandemic, physical road shows had come to a grinding halt but now with infections down, management has decided to re-start the process.
Online road shows covering investors across other regions will also continue, the report added.
(With inputs from agencies)





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