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April 27, 2022 / 03:46 PM IST

LIC IPO Press Meet Highlights: LIC IPO to be biggest in India despite reduced offer size

LIC Press Conference Highlights: LIC's IPO will open on May 2 for anchor investors and from May 4 to May 9 for the general public. The government has set a price band of Rs 902 to 949 per equity share, with a discount of Rs 60 for policyholders.

LIC Press Conference Highlights: Life Insurance Corporation on April 27 invited the media for a conference at 12.30 pm on the forthcoming IPO. The much-awaited issue of the state-run insurance behemoth is set to open on May 2 for anchors and on May 4

for subscription, the sources said a day earlier, adding that the IPO will likely close on May 9. They said there will be no greenshoe option for the IPO priced at Rs 902-949, with a discount of Rs 60 for policyholders. Employees and retail investors will be given a Rs 45 discount. Besides policyholders and shareholders, the shares will be allocated this way: 50 percent for qualified institutional buyers (QIBs), 35 percent for retail buyers and 15 percent for non-institutional investors. With the revised price band, the government now expects to raise up to Rs 21,000 crore from selling a 3.5 percent stake in LIC, a third of the original expectations and a billion short of the original projection.

The Securities and Exchange Board of India on April 25 gave its nod to the updated draft red herring prospectus, which lists a 3.5 percent stake sale instead of five percent as mentioned in the previous draft papers. The revised DRHP was submitted before the market regulator last week. The red herring prospectus will be submitted by April 27.
  • April 27, 2022 / 11:44 AM IST

    LIC IPO Press Meet Live: Where to watch the LIC IPO Live press conference

  • April 27, 2022 / 03:46 PM IST

    This blog is now closed. Thank you for being with us. For more news, views and updates log on to Moneycontrol.com

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  • April 27, 2022 / 02:53 PM IST

    LIC IPO Press Meet Live: LIC books nearly Rs 43,000 cr profit from sale of investments during April-Dec of FY22

    Life Insurance Corporation of India (LIC) booked profit worth Rs 42,862 crore from the sale of investments in the first nine month of the fiscal year 2022, showed the insurer’s revised draft papers for its initial public offering. Profit from sale of investments, largely equity assets, were already 93 percent of the record profits amassed by LIC of Rs 46,187 crore for the financial year ended March 31, 2021. Between April 1, 2021-December 31, 2021, both Sensex and Nifty rose 18 percent each while both declined 1.5 percent in the December quarter. The total investment in equity as of the nine months ended December 2021 stood at Rs 9.85 trillion against Rs 7.97 trillion in FY21.  As of December 2021, LIC’s AUM was Rs 40.1 trillion. LIC’s AUM  is more than 3.2 times higher than the total AUM of all private life insurers in India. Read more here

  • April 27, 2022 / 02:28 PM IST

    LIC IPO Press Meet Live: Fair and attractive valuation to draw retail investors significantly: DIPAM secretary

    Tuhin Kanta Pandey, secretary of the department of investment and public asset  management (DIPAM), on 27 April said the government expects significant retail participation for the public issue of country's largest insurer, Life Insurance Corporation of India (LIC). The government has taken extensive feedback from merchant bankers to determine valuation, Pandey said speaking at a press conference in Mumbai on 27 April. According to the DIPAM secretary,  LIC valuation  is “fair and attractive” and the decision to list LIC was after taking into account factors like market demand, reduced mkt volatility, domestic flows and LIC performance. The decision to list Life Insurance Corporation of India (LIC) was taken after considering market demand, reduced market volatility and company's performance, Pandey said. Further, there is no plan to bring any follow on public offer (FPO) in the next one year, Pandey added. Pandey said market regulator, Securities and exchange board of India, SEBI has granted exemption for dilution of shares. 

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  • April 27, 2022 / 02:01 PM IST

    LIC IPO Press Meet Live: DIPAM secy Tuhin Kanta Pandey on FPO for LIC

    DIPAM secy Tuhin Kanta Pandey said, "We aren't going to bring in any other FPO for LIC in the next one year." According to Sebi rules, companies can’t carry out a follow-on public offer (FPO) for six months after the IPO.

  • April 27, 2022 / 01:55 PM IST

    LIC IPO Press Meet Live: LIC to list on stock exchanges on May 17; check all the important dates and numbers here

    India's largest insurer LIC is likely to list on the stock exchanges on May 17, a week after its bumper initial public offering (IPO) closes.

    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, which opens on May 4 and closes on May 9. 

    As per the final papers filed with SEBI, the allotment of shares to the demat account of bidders will happen by May 16, post which LIC would commence trading of equity shares in the stock exchanges and list "on or about May 17".

    While anchor investors will bid for the share sale on May 2, the issue would open for subscription of institutional and retail buyers on May 4 and close on May 9. 

    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. 

    Over 9.88 crore shares are reserved for Qualified Institutional Buyers (QIBs) and over 2.96 crore shares for non-institutional buyers.

    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.

    "Bids can be made for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter," the LIC said in the Red Herring Prospectus approved by SEBI.

  • April 27, 2022 / 01:48 PM IST

    LIC IPO Press Meet Live: 'This is LIC 3.0': Chairman sounds war cry ahead of IPO launch

    Life Insurance Corporation chairman hailed the state-run insurer that has been losing market share to private players as LIC 3.0 on April 27 ahead of its initial public offering that opens for subscription on May 4. "The time has come for LIC to be listed; I believe all LICians will work together to make it a huge success, and from now on we will call it LIC 3.0," said MR Kumar. "LIC struggled in the first two decades to sell insurance in India. Then it gathered momentum in the 70s and 80s. That was LIC 1.0. Then it adapted to the competition, which was LIC 2.0. And now this is LIC 3.0," said Kumar. Read more here

  • April 27, 2022 / 01:42 PM IST

    LIC IPO Press Meet Live: DIPAM Secy Tuhin Kanta Pandey on IDBI Bank

    Both LIC and government have decided to cede management control from IDBI Bank. Process for this has been set into motion.

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  • April 27, 2022 / 01:27 PM IST

    LIC IPO Press Meet Live: LIC IPO is right-sized and will not crowd out capital and monetary supply, says DIPAM secretary

    The much-anticipated initial public offering (IPO) of Life Insurance Corporation of India will not crowd out capital and monetary supply, said Tuhin Kanta Pandey, secretary at department of investment and public asset management (DIPAM), at a press conference on April 27. The IPO will open for subscription on May 4 and the government will sell 3.5 percent stake in the range of Rs 902-949 per share. Pandey said even after the reduced size, LIC's will be the largest IPO in India so far. He also expected strong retail participation in the issue. He added that the government wants to champion LIC as a long-term value creator in the equity market. Pandey said, "This is right-sized considering the capital market environment and will not crowd out capital and monetary supply, given the current environmental constraints. The LIC has filed the red herring prospectus for its IPO with the price band set at Rs 902-949 per share.

  • April 27, 2022 / 01:07 PM IST

    LIC IPO Press Meet Live: LIC likely to raise Rs 5,630 crore through pre-IPO placement of shares

    Life Insurance Corp of India, on course its Rs 21,000-crore Initial Public Offer (IPO), aims at raising up to Rs 5,630 crore on the upper price band through a pre-IPO placement of shares. The IPO will be a pure offer for sale of up to 221.37 million shares. The firm reserved around 59.29 million shares for the anchor investor portion. Employee reservation portion is at 1.58 million while policyholder reservation at 22.14 million. QIB portion set at 98.83 million. The anchor investment will open on May 2 and the IPO will open for subscription on May 4. It will close on 9 May. The basis of allotment will be on May 12 and shares will be credited on the demat accounts on May 16. The company plans to list on exchanges on May 17. India's largest IPO, which slashed around 60 percent of its issue size due to poor market conditions, earlier announced its price band at Rs 902-949 a share. With this, LIC will become the country's fifth most-valued listed firm, with a market cap of over Rs 6 trillion, according to calculations by Moneycontrol. Globally, it will rank 186th in terms of market cap. Read more here

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