- Date : 28/04/2022
- Read: 3 mins
LIC revised the draft prospectus filed with SEBI.
State-run insurance behemoth Life Insurance Corporation of India’s upcoming IPO is scheduled to open for subscription from May 04, 2022. The insurance company revised its Draft Red Herring Prospectus (DRHP) earlier this week, which was approved by the market regulator Securities and Exchange Board of India (SEBI) on April 25, 2022.
What has changed?
LIC has revised both the stake sale as well as the price band for the IPO. The company will be offloading 22.13 crore shares for sale of 3.5% in the secondary market. The revised LIC IPO price band is between Rs 902 and Rs 949. With this, the company expects to raise about Rs 20,557.23 crore from the stock markets, which is almost one-third of the earlier projection of Rs 60,000 crore.
Despite the changes, the LIC IPO will be the biggest in domestic history. With the revised projections, the total business is valued at a staggering Rs 6.07 lakh crore.
Also Read: A Woman's Guide To Investing In IPOs
What are the details of the LIC IPO date and price band?
• LIC IPO opening date: May 04, 2022
• LIC IPO closing date: May 09, 2022
• Price band: Rs 909 - Rs 949
Retail investors and LIC employees will get a Rs 40 discount on the issue price, while LIC policyholders will receive a discount of Rs 60.
Investors can bid in a lot of 15 shares, up to a maximum of 14 lots. Of the total shares on sale, 50% are reserved for Qualified Institutional Buyers (QIB), 15% for non-institutional investors and the rest for retail investors.
Should you invest in the LIC IPO?
With the present volatility, the LIC IPO share price is expected to remain muted on the listing. However, it is considered a ‘buy’ for the long term, as per various analysts. LIC is the fifth-largest insurer in the world in terms of Gross Written Premium (GWP) and tenth-largest in terms of total assets.
With the rapidly increasing demand for insurance post Covid-19 and growing household savings, the prospects for the insurance industry look strong. LIC’s recent partnership with Policybazaar to service demand through online channels will further improve domestic penetration for insurance products and help LIC maintain its leadership position.