LIC IPO: 10 things you should know about India's biggest IPO

4 May 2022 , 04:04 PM

LIC’s long-awaited initial public offering is open for subscription till May 9, 2022. The public issue opened to anchor investors on May 2.

Below are the key points you need to know about LIC IPO:

• The total value of LIC IPO is set at Rs21,000 crore which makes it India’s biggest public issue to date
• Around 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders
• One IPO lot comprises 15 LIC shares and an applicant can apply for a minimum of one and a maximum of 14 lots
• The minimum amount required to apply for the LIC IPO is Rs14,235
• The government announced a Rs60 discount to the policyholders and Rs45 discount to LIC employees applying for the  issue
• LIC policy holders’ reservation portion will be 10 per cent of the offer size, while employees will have five per cent of post-offer equity share capital reserved
• The LIC IPO has received Rs13,000 crore worth of investment commitments from anchor investors — over twice the value of shares offered to such investors, as per news reports
• The LIC shares are likely to be listed on BSE and NSE on May 17
• LIC, India’s largest insurance company had market share of ~37%/74% in FY22 in retail APE/group NBP segments, respectively. 
• The government, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of the five per cent planned earlier

The IPO will contribute significantly to the government’s disinvestment proceeds this fiscal.