India’s biggest-ever IPO opens today — check out the important dates and details of LIC’s initial share sale

• The life insurance company will open its IPO today on May 4 and close on May 9.
• The government is looking to raise ₹21,000 crore by selling 22.13 crore shares or 3.5% stake in the life insurance behemoth.
• Shares of the company were trading at a premium of ₹85 per share in the grey market.

State-owned insurance behemoth Life Insurance Corporation of India (LIC) will open its initial public offering (IPO) today, May 4.

The government is looking to raise ₹21,000 crore by selling 22.13 crore shares or 3.5% stake in the life insurance behemoth. Besides, 10% of the issue size is being reserved for policyholders.

Also, LIC is fetching a premium of ₹85 over the upper price band of ₹949 in the grey market.

A special discount of ₹45 is being offered to retail investors and employees of LIC. And a discount of ₹60 per share is being offered to about 30 crore policyholders associated with the life insurer.

Here are some of the important details of the IPO:
Life Insurance corporation of India (LIC) is the largest insurance player in India and has a market share of more than 60% in total premium

LIC has the largest individual agent network of 8.96 lakh, which dropped from 10.86 lakh as of March 31, 2021. However, things have changed in the last few years because of the pandemic. While individual agents bring 96% of new business premiums to the life insurer, many of them are no longer working for the company.

Although analysts are concerned about losing market share they believe LIC’s large distribution channel will keep it at the top. They believe LIC is significantly lower valued than other listed private players despite being the dominant player. LIC’s price band is fixed at ₹902-₹949.

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