LIC Press Conference Today ahead of IPO launch- Know Time and other Details

LIC Press Conference, April 29: LIC is set to hold a press conference today ahead of its mega IPO launch on May 4, 2022. The much-awaited LIC IPO will open on May 4 and remain open for interested investors till May 9, 2022. 

The centre, which wholly owns the Life Insurance Corporation of India, plans to sell 3.5 percent of the shares during the mega IPO launch. The LIC IPO size has been reduced from the earlier 5 percent mentioned in the previous Draft Red Herring Prospectus (DRHP).

"Even after reduced size, LIC will be largest IPO, we will call it LIC 3.0 phase," said Dipam Secretary Tuhin Kant Pande at a press meet previously. 

Read Also: LIC IPO to Open on May 4- Know Price Band, Share Price and other IPO details

Why did LIC cut IPO size?

LIC has cut the IPO size from 5 percent to 3.5 percent due to the market condition. The proposal to reduce the LIC IPO size to 3.5 percent from 5 percent was tabled and approved at a board meeting.

LIC has set its IPO Price Band at Rs 902 to Rs 949 per equity share.

LIC IPO Size

Despite the reduced size, the LIC IPO is still expected to be the largest so far in the country. The government plans to raise at least Rs 20,557.23 crore by selling of 3.5 percent of its equity stake or 22.13 crore shares of LIC. This is though lower than the earlier projection of Rs 60,000 crore. 

Out of the total 22.13 crore shares offered for sale, around 5.93 crore shares have been reserved for the anchor investor portion, while the employee reservation portion has been marked at 1.58 million and policyholder reservation is at 22.14 million.

LIC has reserved half of the shares for qualified institutional buyers (QIB), about 15 percent of the shares have been reserved for non-institutional investors and the rest for retail investors.

LIC IPO Discount 

The LIC policyholders will get a discount of Rs 60 per equity share, while the retail investors and employees will get a discount of Rs 40 per equity share.

Background

The Securities and Exchange Board of India (SEBI) had approved LIC's initial public offering proposal earlier in  February. The centre had initially wanted to list LIC IPO in the last financial year, which ended on March 31 but had to delay the sale of the shares amid the market dip triggered by the Russia-Ukraine war.