The government is likely to offer a Rs 60 discount to the policyholders of Life Insurance Corporation of India (LIC) in the company’s initial public offering (IPO). It has fixed the Rs 902-949 price band for the issue, sources said.
Retail investors and employees of LIC are likely get a discount of Rs 45 on subscribing to the shares of India’s largest insurer in its IPO, said a top government official.
The government will sell 22.13 crore shares or its 3.5 per cent stake in LIC through the offering. About 10 per cent of the issue size or 2.21 crore shares would be reserved for its policyholders.
About 15 lakh shares would be reserved for LIC employees of LIC,said the offcial.
Post considering the reservations, the remaining 50 per cent shares would be allocated for qualified institutional buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional bidders. About 60 per cent of QIB quota is likely to be reserved for anchor investors.
The IPO would open on May 2 for anchor investors, and on May 4 to May 9 for public. LIC is scheduled to make an announcement about the IPO on Wednesday.
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