The proposed maiden public offer by state-owned LIC has received interest from over 25 anchor investors, both foreign and domestic
IPO Press Trust of Endopodite: April 29, 2022, 3:52 pm IST
The government has said more than 25 anchor investors have evinced interest in LIC’s IPO
Kolkata:
The proposed maiden public offer by state-owned Life Insurance Corporation of India (LIC) has received interest from over 25 anchor investors both foreign and domestic, an official said here on Friday.
The government plans to dilute 3.5 percent of its stake in LIC to raise ₹ 21,000 crores from the market next month.
During the formation of LIC in 1956, the government had infused ₹ 5 crores as seed capital.
An official of one of the lead managers said I reserved 50 percent of the offer for QIPs, including anchor investors.
He said 35 percent is being reserved for retail investors, 15 percent for high net worth individuals, and ten percent for policyholders.
It will open the anchor book on May 2, he said.
Thirty percent of the portion reserved for qualified institutional placements (QIPs) is for anchor investors, he said.
LIC Managing Director Siddhartha Mohanty told reporters here that even after the IPO, the government’s sovereign cover will continue under Section 37 of the LIC Act.
He said the government shareholding in LIC will not fall below 51 percent.
To a query, he said “the government did not go for an additional issue of shares by LIC but instead opted for dilution as the corporation is cash rich with healthy solvency”.
Mr. Mohanty said the Centre, in the last two years, had not taken dividends and plowed back ₹ 5,600 crores to the life insurer.
Post the public offer, a professional board will run LIC with nine independent directors.
Mr. Mohanty said the post of chairman will be in place till 2024, and then replaced by MD and CEO.
With the largest market leadership in the life insurance market in India, it has ₹ 40 lakh crore as assets under management (AUM) and reserves of ₹ 30 lakh crore.