LIC IPO anchor book opens today, May 2: Here are 10 key points

New Delhi: The initial public offering (IPO) of the Life Insurance Corporation (LIC) will open for investors on May 4 and will remain open to subscription till May 9. The anchor book will be opened on Monday (May 2). 

The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.

Here are key 10 points you want to know regarding the Upcoming LIC IPO

The proposed LIC maiden public offer has received interests from more than 25 anchor investors both foreign and domestic. PTI quoting an official of one of the lead managers said 50% of the offer is reserved for QIPs, including anchor investors. 

Thirty percent of the portion reserved for QIPs is reserved for anchor investors, the news agency said.

35% is being reserved for retail investors, 15% for high networth individuals and 10% for policyholders.

LIC IPO will be a landmark public issue in the history of the Indian capital market and is poised to be India`s biggest IPO till date. 

The IPO values LIC at Rs 6 lakh crore.

LIC Managing Director Siddhartha Mohanty had previously said that the government's sovereign cover will continue under Section 37 of the LIC Act.

The government shareholding in LIC will not fall below 51%.

The government is selling over 22.13 crore shares in LIC at a price band of Rs 902-949 a piece in the initial public offering.

While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policy holders bidding in IPO would get a discount of Rs 60 a share.

Policyholders planning to buy LIC IPO shares can invest up to Rs 2 lakh. The limit for the retail category is also set at Rs 2 lakh. 

With Agencies Inputs