LIC reaches its policyholders via SMS on IPO eve
Highlights
- LIC on Tuesday approached its policyholders through SMS and other medium.
- It informed them about the share sale.
- The Initial Public Offering (IPO) of LIC opens for retail and institutional investors today.
Ahead of its initial public offering, insurance behemoth LIC on Tuesday approached its policyholders through SMS and other medium to inform them about the share sale. The Initial Public Offering (IPO) of LIC opens for retail and institutional investors on Wednesday and will close on May 9.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will also get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per share.
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.
"LIC filed red herring prospectus(RHP) dt 26.4.22 with SEBI/Stock Exchanges for its IPO reserving shares for eligible policyholders. For details & risks in investing in LIC IPO and disclaimers, see RHP and links," said the SMS sent by the insurer to the policyholders on their registered mobile numbers.
LIC has been informing about the IPO for several months through various channels including print and TV advertisements. Earlier in the day, LIC informed it has garnered 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, the insurer said in an early morning filing to stock exchanges.
The country's largest insurer 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 ever in the country.
So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.
Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer's group product portfolio comprises 11 group products.
As on December 2021, LIC had a market share of 61.6 per cent in terms of gross written premium, 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.
