The Union government has set a price band for Life Insurance Corporation's IPO of Rs 902 to Rs 949 per share.
India’s largest ever IPO would open on May 2 for anchor investors and from May 4 to May 9 for investors.
On Saturday, the LIC board approved a cut in its IPO issue size to 3.5 per cent from 5 per cent. The government is now expected to sell 3.5 per cent of its stake in LIC for Rs 21,000 crore, thereby valuing the insurance monolith at 6 lakh crore.
Around 10 per cent of the issue will be reserved for policyholders while employees will be eligible to book up to 0.15 crore shares of the IPO. Employees and retail investors will be given a discount of Rs 45 rupees while LIC policyholders will be offered a discount of Rs 60.
After provision for policyholders and shareholders, the remaining shares will be allocated in the ratio of 50% to qualified institutional buyers (QIB), 35% for retail and 15% for non-institutional investors.
Out of the QIB's portion, around 60% will be reserved for anchor investors, the source told a wire agency.
LIC management and investment bankers will embark on road shows in six cities - Mumbai, New Delhi, Bengaluru, Ahmedabad, Rajkot and Kolkata - where they will meet potential investors and analysts starting on Wednesday. The road shows are likely to be concluded by the end of this week