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

Updated on May 04, 2022 01:16 PM IST
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.
Analysts expect LIC’s IPO to continue dragging on competitors for about a year and to affect other sectors, too.(AFP)
Analysts expect LIC’s IPO to continue dragging on competitors for about a year and to affect other sectors, too.(AFP)

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). 

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.



    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

Close Story
Story Saved
Saved Articles
My Reads
Sign out
New Delhi 0C
Saturday, August 13, 2022
Start 15 Days Free Trial Subscribe Now