LIC IPO price band likely at Rs902-949/ share

Mumbai: The country's life insurance behemoth, Life Insurance Corporation of India (LIC) is likely to price its IPO around Rs950, market sources said. The Corporation is expected to announce the price band on Wednesday.

To be precise, LIC IPO price band is set between Rs902 and Rs949. Also, the government, who is the 100 per cent owner of the Corporation as of now, is likely to dilute 3.5 per cent of its stake through the IPO which will be in the form of an Offer For Sale (OFS) and set to hit the market in the first week of May. The details will be out once the board of the Corporation meets tomorrow, sources familiar with the development told Bizz Buzz.

The OFS has been revised to 221.3 million shares from 316.25 million shares previously.

If sources are to be further believed, then LIC IPO will open for subscription on May 4, to close on May 9. The bid period for LIC IPO anchor investors has been fixed on May 02. Again, the discount for retail investors in the IPO and its employees will be Rs 45 and Rs 60 in case of LIC policyholders. If all goes well, the government is likely to mop up around Rs50,000 crore through the LIC IPO.