LIC IPO likely to open on May 4

26 Apr 2022 , 12:02 PM

The much-awaited initial public offering (IPO) of the Life Insurance Corporation of India is likely to open for subscription from May 4, 2022. The issue is expected to close on May 9 and with this the anchor book for the LIC IPO is likely open on May 2.

LIC has cut the size of IPO from 5 per cent to 3.5 per cent due to the market condition. A proposal to reduce the size of LIC’s IPO to 3.5 per cent from 5 per cent proposed in its draft red herring prospectus (DRHP) was tabled and approved at a board meeting held on Saturday.

The revised DRHP was submitted before the market regulator last week. The government, which wholly owns the insurance behemoth, plans to raise an amount of Rs21,000 crore by selling around 22 crore shares which is equivalent to a 3.5 percent stake.

As per the LIC Act, the government can reserve up to 10 per cent for the policyholders.

However, the government had initially wanted to list LIC in the last financial year that ended March 31 but had to delay the sale after the Russia-Ukraine war triggered a market rout.

LIC IPO has received Rs13,000 crore worth of investment commitments from anchor investors, more than twice the value of shares offered to such investors.

Source: Media reports