The initial public offer of Life Insurance Corporation (LIC) of India (LIC) has completed most of the proceedings successfully. The country’s largest insurer will list itself on the bourses on May 17, All eyes are now on the listing that is scheduled this week.
Here are a few things that you should know about LIC IPO:
1) The shares of the insurance behemoth will start trading on Tuesday in the secondary market.
2) The Initial Public Offering (IPO) of Life Insurance Corporation (LIC) closed on May 9 and shares were allocated to bidders on May 12.
3) The initial share sale offer was oversubscribed nearly three times the issue size
4) The government sold over 22.13 crore shares or 3.5 per cent stake in LIC through the IPO at a price band of ₹902-949 a share.
5) The retail investors and eligible employees of LIC were offered a discount of ₹45 per equity share over the issue price, while policyholders got a discount of ₹60 per share.
6) LIC policyholders and retail investors have got the shares at a price of ₹889 and ₹904 a piece, respectively.
7) As per the prospectus filed by LIC on May 12, the offer price of the share sale has been fixed at ₹949 per equity share.
8) The government has fixed the issue price of LIC shares at ₹949 apiece.
9) According to analysts, the listing gains are likely to be limited if any. There is a good chance that the listing could be at a discount.
10) Going by the issue price, it will make the company the fifth-largest company in the country. Only Reliance Industries, TCS, HDFC Bank and Infosys will be more valuable than LIC.