LIC may raise Rs 5630 crore through pre-IPO placement, issue will open for anchor investors on May 2

LIC ,LICThere is a lot of enthusiasm for the IPO of ) from general investors to special investors. According to a news of Moneycontrol, IPO worth Rs 21 thousand crores (IPO) even before LIC can raise Rs 5 thousand crore through pre-IPO placement of shares. At the same time, according to the reports in the media, the anchor investor (Anchor Investor) has already committed investment of more than Rs 13 thousand crore, that is, big investors have made their preparations for more than two times the shares offered by LIC. This indicates that LIC’s IPO may get good response from investors.

Plans to raise Rs 5630 crore through pre placement

According to the Money Control report, LIC can raise Rs 5630 crore through pre-IPO placement based on the upper level of the price band. LIC has fixed a price band of Rs 902-949 for the IPO. IPO will be purely offer for sale in which more than 22 crore shares will be sold, 5.9 crore shares have been kept for anchor investor. 15.8 lakh shares have been kept for employees while 2.2 crore shares have been kept for policy holders. The issue for anchor investors will open on May 2. At the same time, the IPO will be open from May 4 to May 9. According to sources, 4 to 5 global anchor investors can bid in LIC IPO. In addition, domestic anchor investors can also participate in the IPO.

Government will get 21 thousand crores through issue

Through the IPO, the government will sell its 3.5 percent stake in the public sector company. With this, the government will get Rs 21,000 crore. Based on the IPO, the valuation of LIC comes to Rs.6 lakh crore. The issue size has been continuously reduced, in view of the deteriorating sentiments due to the Russia-Ukraine crisis, the government has cut the issue size. However, even after reducing the issue size, this is going to be the biggest IPO of the country so far. In order to attract more and more small investors in LIC’s IPO, it has also been announced to give discount to LIC employees and policy holders. It is likely that the listing of the issue will take place on May 17-18. The IPO will open for anchor investors on May 2.

How has been the performance of LIC

So far in FY 2022, LIC has sold around 21.7 million policies in India. At the same time, LIC made a net profit of Rs 235 crore in the October-December quarter. Between April and December 2021, the net profit increased to Rs 1,671.57 crore. At the same time, LIC raised a premium of Rs 1,98,759.85 crore from new business in the last financial year. This is nearly eight per cent higher than Rs 1,84,174.57 crore a year ago. On the other hand, from the perspective of share in the life insurance business, LIC holds 63.25 percent of this market while the remaining 36.75 percent is with 23 private companies. LIC has jumped 32 places to 206th position in the global brand rankings in 2021. According to Brand Finance, LIC is the largest and strongest brand in the country with a valuation of $8.655 billion in 2021. Its valuation was $ 8.11 billion in 2020. That is, it increased by 6.8 percent.