Keep the date, LIC IPO may open on May 4.
The initial public offering (IPO) of state-run insurance company is likely to open on May 4. The hope is to raise Rs 21,000 crore by diluting a 3.5% stake, sources said on Monday. The most awaited issue may open for anchor investors on May 2 and the overall issue may close on May 9. Sources said the dates would be formally announced on Wednesday morning or Tuesday late evening. It is bigger than the Paytm IPO of Rs 16,600 crore.
To ensure that the shares are attractive to retail investors and to leave some money on the table for listing gains, the government has settled for a lower valuation of Rs 6 lakh crore. At a Rs 6-lakh crore valuation, a 3.5% stake would fetch Rs 21,000 crore. Officials have defended the valuation, saying it is fair and attractive based on detailed feedback from analysts and experts. The is the centerpiece of the government’s plans to raise Rs 65,000 crore from disinvestment in state-run companies in the current fiscal year.