Most Awaited LIC IPO: Price Band, Lot Size, GMP, And Other Details in 10 Points

by Steven Burnett

Last Updated: May 10, 2022

LIC IPO Complete Information:

Life Insurance Corporation of India is an Indian investment and statutory insurance company based in Mumbai, India. The Government of India owns it. The Life insurance Corporation of India (LIC) was established on September 1st, 1956, when the Parliament of India passed the Life Insurance of India Act, which nationalized India’s insurance industry. The state-owned Life Insurance Corporation of India was formed through the merger of over 245 insurance companies and provident societies.

In addition, LIC had a total life fund of Rs.28.3 trillion as of 2019. In the 2018-19 fiscal years, the total value of all sold policies was Rs.21.4 million. In the fiscal years 2018-19, the LIC settled 26 million claims. It currently has 290 million policyholders.

LIC IPO is official now. Next month, the Life Insurance Corporation of India will launch its public issuer offer (IPO). More details about this IPO are mentioned below:

  1. LIC IPO GMP (Grey Market Premium)

On Monday, shares of LIC IPO began trading in the grey market at a premium price of Rs.25. Currently, the LIC IPO grey market premium is Rs.48. The grey market is anticipating LIC IPO listing at around Rs.997 (Rs.949 + Rs. 48), which is around 5% higher than its issue price.

  1. Price of the LIC Initial Public Offering

The Government of India has set the LIC IPO price range at Rs.902 to Rs.949 per share.

  1. Subscription Date of LIC IPO

The public issue by the insurance giant will be open for subscription from May 4th, 2022, and it will be available for bidding until May 9th, 2022.

  1. Discount for the LIC Employees

The Government of India has announced Rs.45-per-equity-share discount to the LIC employees who apply for the public issue.

  1. Discount for LIC Policyholders

The Government of India has announced Rs.60-per-equity-share discount to the policyholders. This discount is available for only those LIC policyholders who purchased their policy on or before April 13th, 2022, when LIC submitted their Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

  1. LIC IPO size

The Government of India hopes to raise Rs.21,008 through its public offering, around 100% offer-for-sale (OFS).

  1. LIC IPO Lot Size

An applicant would be able to apply for this IPO in lots. One lot contains 15 LIC shares.

  1. LIC IPO Application Limit

Bidders can apply for a maximum of 14 lots and a minimum of one lot of the LIC IPO.

  1. LIC IPO Listing

The public issue of the IPO will list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date for the public issue of LIC IPO is May 17th, 2022.

  1. LIC IPO Registrar

KFin Technologies Limited Company has been appointed as the official registrar for the LIC IPO.

Tuhin Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that LIC listing is part of the government’s long-term strategic vision and will significantly increase the LIC Company’s worth in the long run.

Further, Tuhin Pandey stated, “The LIC IPO is correctly sized for the capital market conditions and would not crowd out capital supply given the current market situation.” He also said that “The LIC IPO would be the largest in the country despite the smaller offer size.”

ABOUT AUTHOR

by Steven Burnett

Steven Burnett has over 15 years of experience in a range of industries and domains. Steven has a flair for gathering data and information through extensive research efforts, and has a strong set of skills to cover almost any domain with ease and produce reports that are easy to understand and aid in making well-informed decisions. You can get in touch with him here. Phone No: +1 315-447-6937 Email: steven.b@coinlaw.io

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