LIC IPO opens today: What you need to know before applying

LIC's share offering, the country's biggest-ever IPO, opened to the public today for subscription. With this IPO, the government is aiming to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth. Here are some key things you should know before applying for India's biggest IPO.

LIC's share offer, the country's biggest-ever IPO, opened for subscription today (May 4) and will remain open for bidding till May 9. Credit: Reuters Photo

LIC had priced its shares in a band of Rs 902-949 per share. With this IPO, the government aims to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth. Credit: Reuters Photo

The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17. Credit: Reuters Photo

Investors can bid for a minimum of 15 shares (one lot) for Rs 14,235 at the upper end of issue price. Credit: Reuters Photo

A discount of Rs 45 per equity share has been offered for the retail investors and eligible employees, and policyholders will get a discount of Rs 60 per equity share. Credit: Reuters Photo

Of the total shares on offer, over 9.88 crore shares are reserved for qualified institutional buyers and over 2.96 crore shares for non-institutional buyers. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders. Credit: Reuters Photo

LIC has already cornered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions. Anchor Investors' (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share. Credit: PTI Photo

LIC reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition. Even after the reduced size of about Rs 20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country. Credit: Reuters Photo

As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or GWP, 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued. Credit: Bloomberg