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LIC IPO opens tomorrow: 7 key things to know before subscribing
Country's largest insurer Life Insurance Corporation of India (LIC)will launch its initial public offer (IPO) - the biggest in the history of the Indian capital market - tomorrow.
All eyes are set on the launch of the much-awaited Life Insurance Corporation of India IPO that is set to open for public subscription between May 4-May 9.
The price band for the offer has been fixed at Rs 902-949 per equity share of face value Rs 10 each.
In the behemoth life insurance and general insurance provider, the government shall offload 3.5% stake as against the previously sought 5% stake owing to the market conditions.
In the country's largest ever IPO which is a complete OFS - the centre plans to raise Rs. 20,557.23 crore much lower than the earlier estimated of about Rs. 60,000 crores.
LIC enjoys a strong market share of 61.6 per cent based on total premium and 61.4 per cent based on new business premium in the first nine months of FY22.
What is worrying is that LIC has been consistently losing market share to private peers.
The government will remain the largest shareholder and key manager even after the IPO. Thus, any future government intervention might be detrimental to shareholders.