Life Insurance Corp Of India (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.
Earlier, CNBC TV18 reported that the price band for the initial public offering of LIC has been set at Rs 902 to Rs 949. On the upper band of the share price, the firm will be valued at Rs 6.01 trillion.
Reliance Industries Ltd is the most valued firm with a market cap of Rs 18.23 trillion followed by Tata Consultancy Services Ltd (Rs13.12 trillion), HDFC Bank Ltd (Rs 7.58 trillion) and Infosys Ltd (Rs 6.57 trillion).
LIC's IPO will open for subscription on May 4 and close on May 9, according to media reports.
The Securities and Exchange Board of India has given its nod to the updated draft red herring prospectus of LIC, which lists a 3.5 percent stake sale instead of 5 percent as mentioned in the previous draft papers.
The firm will mop up Rs 21,000 crore via offer for sale, which will be the biggest issue in India.
LIC has reserved 10 percent of the issue size for policyholders and 5 percent for employees. The IPO will have Rs 60 per share discount for its policyholders. The firm has reserved up to 35 percent of its total IPO size for retail investors.
LIC is the eighth largest life insurer globally in terms of total assets. As of fiscal 2021, it holds around $507.33 billion in total assets. Currently, China's Ping An Insurance is the largest insurer in terms of total assets, followed by Germany's Allianz SE and France-based AXA SA.
As of December 2020, Ping An Insurance holds around $1.38 trillion in total assets, while Allianz SE and AXA SA have $1.27 trillion and $965.51 billion, respectively. US-based Metlife Inc, Japan's Nippon Life Insurance, Britain's Aviva PLC and China Life Insurance Co have total assets of $795.15 billion, $705 billion, $657.34 billion and $616.29 billion, respectively.
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