LIC IPO opens for anchor investors today | Top points
India Today
The government plans to dilute 3.5 per cent of its stake in LIC to raise Rs 21,000 crore from the market this month.
Life Insurance Corporation of India's (LIC) initial public offering (IPO) is opening for anchor investors on Monday. The country's largest life insurer has set the price band at Rs 902-949 per share for its Rs 21,000 crore IPO which will open for subscription on May 4.
The government plans to dilute 3.5 per cent of its stake in LIC to raise Rs 21,000 crore from the market this month.
The proposed maiden public offer by state-owned LIC has received interest from more than 25 anchor investors both foreign and domestic. The anchor book is opening on Monday, as per a PTI report.
An official of one of the lead managers said 50 per cent of the offer is reserved for qualified institutional placement (QIP), including anchor investors. Thirty per cent of the portion reserved for QIPs is reserved for anchor investors, he said, PTI reported.
He said 35 per cent is being reserved for retail investors, 15 per cent for high networth individuals and ten per cent for policy holders.
Meanwhile, LIC Managing Director Siddhartha Mohanty said that even after the IPO, the government's sovereign cover will continue under Section 37 of the LIC Act. He said the government shareholding in LIC will not fall below 51 per cent, according to a PTI report.
Post IPO, LIC will be run by a professional board with nine independent directors who have already been inducted. Mohanty said the post of chairman will be in place till 2024, and then replaced by MD and CEO.
