LIC IPO Opens Under The Shadow Of Russian Invasion Of Ukraine

The much awaited initial public offering (IPO) of Life Insurance Corporation of India (LIC) will open for subscription from 4-9 May. The over Rs. 21,000 crore IPO is offered with a price band of Rs. 902-909 per share.

HIGHLIGHTS

• LIC IPO opens tomorrow and will available till Monday
• The government is giving discount of Rs. 60 to its policy holders and Rs. 45 for retail investors and its employees
• Initial size of the IPO was cut to Rs. 21,000 crore due to international war conditions
• The central government is selling 3.5% stake in LIC through the IPO

About IPO

It is entirely an offer-for-sale (OFS) offered with a discount of Rs. 60 per share for LIC policyholders and Rs. 45 per share for retail investors and institutional buyers. Also, half of the issue has been reserved for qualified institutional buyers (QIBs), 35% is reserved for retail investors, and 15% for non-institutional investors.

The shares will be offered in a lot of 15 equity shares and multiples thereafter. A single lot would cost approximately Rs. 14,235 (excluding discounts) and the shares will be listed in both NSE and BSE.

The cut off time for UPI mandate conformation is fixed at Tuesday 10 May up to 12:00 pm. Applications received after the cut off time won’t be considered.

KFin Technologies has been made registrar of the issue and Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, Nomura Financial Advisory and Securities India, Goldman Sachs India Securities, ICICI Securities, JM Financial, JP Morgan India and SBI Capital Markets are the lead managers.

International Conditions Affecting The IPO

The initial size of the IPO was Rs 65,000 crore but it was reduced to Rs 21,000 crore due to prevailing international conditions including Russian invasion of Ukraine and sustained selling by foreign portfolio investors. They have released stocks worth Rs 1,48,078 crore since December 2021. But still it is the biggest IPO in the country.

About LIC

LIC is the single largest life insurance company in India. It has 1.33 million agents that cover 91% of all districts of the country. Owned by the central government, its market share in terms of premiums or GWP, New Business Premium, individual policies issued, and number of group policies is 61.6 per cent, 61.4 per cent, 71.8 per cent, and 88.8 per cent respectively.

Source:- https://bit.ly/38HItcX