Home/ Markets / Ipo/  LIC IPO priced at top end of indicated range: Report

Life Insurance Corporation (LIC) has priced its initial public offering (IPO) at the top end of the indicated range, at 949, as per a Bloomberg report. Trading of LIC shares on the stock exchanges is due to begin on Tuesday, May 17, 2022.

The government raised over 20,500 crore ($2.7 billion) as the biggest share sale priced at the top of the indicated range following strong demand from local investors.

LIC's mega public offering closed with nearly 3 times subscription at the end of the six-day bidding period, predominately lapped up by domestic retail and institutional buyers but foreign investor participation remained muted. 

Retail investors were given a discount of 45 on the offer price, while policyholders received a 60. The anchor portion of LIC IPO was more than 70% subscribed by domestic institutions, including mutual funds, insurance companies.

The government has diluted 3.5% stake in the insurance behemoth through the Offer for Sale (OFS). The government reduced issue size to 3.5% from 5% decided earlier due to the prevailing choppy market conditions.

Even after the reduced size of about 20,557 crore, the share sale is the biggest ever in the country. LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of 5 crore.

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


Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 13 May 2022, 10:22 AM IST
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout