Ahead of its preliminary public providing, insurance coverage behemoth LIC on Tuesday approached its policyholders by SMS and different medium to tell them in regards to the share sale.
The Initial Public Offering (IPO) of LIC opens for retail and institutional buyers on Wednesday and can shut on May 9.
LIC has mounted the worth band at Rs 902-949 per fairness share for the difficulty. The provide features a reservation for eligible workers and policyholders. The retail buyers and eligible workers may even get a reduction of Rs 45 per fairness share and policyholders will get a reduction of Rs 60 per share.
The share sale is thru an Offer-For-Sale (OFS) of as much as 22.13 crore fairness shares. The shares are more likely to be listed on May 17.
“LIC filed red herring prospectus(RHP) dt 26.4.22 with SEBI/Stock Exchanges for its IPO reserving shares for eligible policyholders. For details & risks in investing in LIC IPO and disclaimers, see RHP and links….,” stated the SMS despatched by the insurer to the policyholders on their registered cellular numbers.
LIC has been informing in regards to the IPO for a number of months by numerous channels together with print and TV ads.
Earlier within the day, LIC knowledgeable it has garnered slightly over Rs 5,627 crore from anchor buyers led primarily by home establishments.
Anchor Investors’ (AIs) portion (5,92,96,853 fairness shares) was subscribed at Rs 949 per fairness share, the insurer stated in an early morning submitting to inventory exchanges.
The nation’s largest insurer diminished its IPO dimension to three.5 per cent from 5 per cent determined earlier because of the prevailing market situation.
Even after the diminished dimension of about Rs 20,557 crore, LIC IPO goes to be the largest ever within the nation.
So far, the quantity mobilised from the IPO of Paytm in 2021 was the biggest ever at Rs 18,300 crore, adopted by Coal India (2010) at almost Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was shaped by merging and nationalising 245 non-public life insurance coverage firms on September 1, 1956, with an preliminary capital of Rs 5 crore.
Its product portfolio includes 32 particular person merchandise (16 collaborating merchandise and 16 non-participating merchandise) and 7 particular person optionally available rider advantages. The insurer’s group product portfolio includes 11 group merchandise.
As on December 2021, LIC had a market share of 61.6 per cent when it comes to gross written premium, 61.4 per cent when it comes to new enterprise premium, 71.8 per cent when it comes to the variety of particular person insurance policies issued, and 88.8 per cent when it comes to the variety of group insurance policies issued.
Source: www.financialexpress.com”