LIC IPO, India's biggest-ever, open and over 30% booked already | Things to know

LIC IPO opens today, May 4, 2022: One of the most awaited public issues, the LIC IPO hits the markets today and will remain open till May 9. Here are a few things to keep in mind before bidding.

Updated on: May 4, 2022, 13:16:40 IST

By HT News Desk

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LIC IPO: India's biggest public issue to date by the country's largest insurance provider – the Life Insurance Corporation (LIC) initial public offering (IPO) – has opened to primary markets on Wednesday. The LIC IPO opened to anchor investors on May 2. Notably, the government, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of the five per cent as listed in the previous Draft Red Herring Prospectus (DRHP).

Analysts expect LIC’s IPO to continue dragging on competitors for about a year and to affect other sectors, too. (AFP)

As of 12:21 pm, about 30% of the LIC shares reserved to retail investors had been sold, according to data provided to local exchanges. And all of the issue kept for policyholders was sold. With the latest public issue, the government aims to provide a significant contribution to the government's disinvestment proceeds this fiscal.

Here are things to note before the IPO opens:

IPO date: The LIC IPO will be open for bidding to the general public from May 4 to May 9. (Click here to know how to apply)

Price band: The LIC IPO price band has been fixed at ₹902 to ₹949 per equity share. However, policyholders and LIC employees applying for the public issue will get a ₹60 and ₹45 discount, respectively.

LIC IPO GMP: Market observers told LiveMint that the LIC IPO grey market premium (GMP) is currently at ₹85, ₹16 higher from the previous day.

IPO size: The Government of India has planned to raise ₹21,008.48 crore from the public issue, making it the country's biggest IPO so far.

IPO lot size and limit: Applicants will be able to apply in lots, where one IPO lot comprises 15 LIC shares. An applicant can apply for a minimum of one and a maximum of 14 lots or 210 shares. The minimum amount required to apply for the IPO, therefore, is ₹14,235 ( i.e. ₹949 x 15). The maximum bid amount for retail investors, policyholders and LIC employees has been capped at ₹2 lakh.

IPO allotment date: The share allotment is likely to be announced on May 12.

LIC IPO listing: The LIC shares are likely to be listed on BSE and NSE on May 17.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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