Business Standard LIC policyholders likely to get Rs 60 discount on shares, IPO opens May 2
The Centre is learnt to have set the price band for the initial public offering (IPO) of Life Insurance Corporation of India (LIC) at Rs 902-949 a share, and may offer a discount of Rs 60 to the policyholders. Retail investors and the employees of LIC, on the other hand, may get a discount of Rs 45 on subscribing to the shares of India’s largest insurer, a senior government official said. The board of LIC has approved the discount to be offered to the three categories, reservations for policyholders and employees, and the issue dates, the official added.
The government may sell 221.3 million shares, or 3.5 per cent stake, in LIC through the offering. This would help the government garner Rs 21,000 crore, valuing the insurer at Rs 6 trillion. The Securities and Exchange Board of India has approved the reduction in the issue size, the official said. An exemption on lowering the issue size was required from the market regulator as the existing guidelines mandate a minimum offering of 5 per cent equity and Rs 5,000 crore worth shares for companies valued over Rs 1 trillion. “All regulatory approvals for LIC’s IPO are now in place,” the official said.
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