It’s also the primary to enter the market with Rs 20,000-crore or extra situation, which, at its itemizing on Could 17, will command a market capital of Rs 6 lakh crore — presumably the best for any inventory itemizing.
Forward of its preliminary public providing for retail traders, the LIC on Tuesday approached its policyholders by means of SMS and different media platforms to tell them concerning the share sale.
The IPO presents 22.13 crore shares for a 3.5% stake on this planet’s tenth largest insurer by complete belongings. Of those, half the shares are reserved for certified institutional consumers (QIB), 15% for non-institutional traders and 35% can be supplied to retail traders. 15.81 lakh shares are reserved for workers whereas 2.21 crore shares are reserved for coverage holders.
Who pays what
The IPO is priced between Rs 902-949 per share with traders allowed to bid in lot sizes of 15 shares and multiples thereof — which implies, on the higher finish of the value band, an investor wants to speculate a minimal of Rs 14,235. Retail traders and workers get a reduction of Rs 45 per share whereas policyholders are entitled to a reduction of Rs 60 per share. The anchor investor portion, which opened on Monday, has already been absolutely subscribed, elevating Rs 5,620 crore.
Sport of thrones
Whereas the LIC IPO (at $2.7 billion) actually dwarfs in measurement the Paytm IPO, which, at Rs 18,300 crore, is now relegated to the second spot, it isn’t the most important on this calendar 12 months — which was LG Vitality Resolution’s $10.8 billion IPO. It is also a far cry from Saudi Aramco’s $25.6 billion IPO, which stays the world’s largest until date. Additionally, be careful for Reliance Jio’s and Reliance Retail’s IPOs, that are anticipated to grab away LIC’s crown as India’s largest IPO.
LIC: The insurance coverage behemoth
LIC was fashioned 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 taking part merchandise and 16 non-participating merchandise) and 7 particular person elective 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.
(With inputs from businesses)
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