LIC IPO on May 4: Know price band, reduced valuation, other key details

New Delhi, Apr 26: Insurance giant LIC has fixed the price band at Rs 902-949 per share for the Rs 21,000 crore public offer that is likely to open on May 4.

According to PTI reports, LIC would offer a Rs 60 discount for policy holders and Rs 40 for retail investors and employees.

The issue is likely to open for subscription on May 4 and is expected to close on May 9.

The government had in February planned to sell 5 per cent stake or 31.6 crore shares of the insurance behemoth and had filed draft papers with Sebi.

The reserved portions for policyholders and employees, and discounts, issue dates, and issue price will be known by Wednesday.

As per the LIC Act, the government can reserve up to 10 percent for the policyholders.

However, the IPO plans faced headwinds due to the ongoing market volatility amid the Russia-Ukraine war.

Last week, the government decided to lower the issue size to 3.5 per cent.

This IPO has been also the part of the centre's FY22 divestment plan. For the year 2022-23, the government has fixed divestment target of Rs. 65000 crore, up from Rs 13,531 crore last fiscal.