The insurance behemoth’s public issue offer, India’s largest ever, has finally arrived and will begin in three days for policyholders, workers, and anchor investors on May 2, with subscriptions opening to the general public on May 4 and concluding on May 9.
In a first of its type, the government has granted policyholders a reservation in the total equity shares on sale in the LIC’s colossal initial public offering (IPO), dubbed “LIC 3.0.”
In fact, policyholders will receive a 10% reservation of the whole offer, while workers and retail investors would receive a 5% reserve of the post-offer equity share capital.
The 66-year-old insurance company’s initial public offering (IPO) will be priced in the range of Rs 902-949, with the government granting a 60-per-share discount to policyholders and a Rs 45-per-share discount to staff and retail investors.
The government intends to sell 3.5 percent of its stock in LIC for 21,000 crores, valuing the insurance behemoth at 6 lakh crore, with offers in multiples of 15 equity shares permitted.
The bidding limit has been set at Rs 2 lakh for policyholders, workers, and retail investors. So, under each of those quotas, you can bid for a maximum of 2 lakh worth of LIC shares, including the discount.
If the draught RHP from February is any indication, anybody with even one policy as of February 13 and the bid or offer launch date can apply under the policyholder reserve section.