LIC IPO Likely To Open On May 4 And Close On May 9: Report

The mega initial share sale of Life Insurance Corp. (LIC) has been announced and the issue will open on 4 May

New Delhi: The Life Insurance Corporation’s (LIC) much anticipated mega initial share sale has been announced and the issue will open on 4 May, according to a PTI report. The bidding for IPO will go on till 9 May. The Securities and Exchange Board of India has given its nod to the updated draft red herring prospectus, which lists a 3.5 percent stake sale instead of 5 percent as mentioned in the previous draft papers, CNBC TV18 reported on Monday.

Notably, the IPO, via which the government will sell 3.5 percent stake in state-owned Life Insurance Corporation (LIC), will fetch Rs 21,000 crore to the exchequer.

Earlier, reports had suggested that the LIC is likely to file the red herring prospectus with market regulator Sebi by Wednesday. “LIC IPO is likely to come to the market in May first week. 3.5 per cent stake dilution, subject to regulatory approval,” an official said.

To recall, In February, LIC had filed draft papers with Sebi wherein it had said that the government will sell 5 per cent stake or 31.6 crore shares in the state-run insurer. However, the IPO plans faced headwinds due to the ongoing volatility in stock markets due to Russia-Ukraine war, forcing the government to cut the issue size to 3.5 per cent.

Reservations for policyholders and employees, and discounts, issue dates and issue price will be known by Wednesday, the official added.