LIC board to meet Tuesday for IPO dates, issue likely opens May 4

 The government will sell its 3.5 per cent equity in LIC for Rs 21,000 crore, valuing India’s largest insurer at Rs 6 trillion

The board of Life Insurance Corporation of India (LIC) will meet Tuesday to consider the launch dates for the company’s initial public offering (IPO). The meeting will also consider the discount to be offered to policyholders, employees and retail shareholders.

The board will consider the proposal of the issue opening date of May 4 and closing date of May 9, an official said. The reservation for the insurer’s employees would also be taken up by the insurer’s board. Once approved by the board, the issue dates, reservation and discounts would be announced on Wednesday, and mentioned in the red herring prospectus (RHP).

LIC’s board, on Saturday, approved reducing the issue size of the LIC IPO Date to 3.5 per cent from 5 per cent proposed earlier. The centre would now dilute 3.5 per cent of its shares in LIC for Rs 21,000 crore subject to regulatory approval, valuing LIC at Rs 6 trillion The government filed LIC’s draft papers with the Securities and Exchange Board of India (Sebi) in February, aiming to raise around Rs 65,000 crore at a market value of Rs 12 trillion as it dilutes its 5 per cent stake. Even at Rs 21,000 crore, the IPO will be the biggest-ever and exceed the record of Rs 18,300 crore by Paytm….