The highly anticipated public issuance offering from the Life Insurance Corporation (LIC), India’s largest, will be in the price range of Rs 902-949, with a Rs 60 discount for policyholders and a Rs 45 discount for retail investors and employees, according to the government sources.
The initial public offering (IPO) was set to open May 2 to anchor investors and May 4-9 to investors, the sources added.
On Saturday, the LIC board approved a reduction in the size of the IPO issuance from 5 percent to 3.5 percent, sources said.
The government is now expected to sell 3.5 percent of its stake in LIC for ₹21,000 crore, valuing the insurance giant at 6 lakh crore.
The government sources also said there is an option to increase the supply from 3.5 percent to 5 percent, in which case the state treasury will yield Rs 30,000 crore from the sale of the equity.
Whether the latest bid is a 3.5 percent share sale for Rs 21,000 crore or 5 percent for Rs 30,000 crore, LIC’s IPO will be India’s largest ever.
Indeed, the size of the public issuance with the reduced 21,000 crore will exceed the amount mobilized by Paytm’s IPO in 2021, the largest ever at ₹18,300 crore, followed by Coal India (2010) at nearly ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.