The much-anticipated initial public offering (IPO) of Life Insurance Corporation of India (LIC) 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."
LIC, on course its Rs 21,000-crore 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. The anchor investment will open on May 2.
Employee reservation portion is at 1.58 million while policyholder reservation is at 22.14 million. QIB portion is set at 98.83 million. The shares will be credited on the demat accounts on May 16.
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