The initial public offering (IPO) of Life Insurance Corporation of India (LIC) will come in the price band of Rs 902-949 per share.

India’s biggest float, which will be open for subscription between May 4 and May 9, will see policyholders getting a discount of Rs 60 per share, while retail shareholders and the employees of the corporation will get a relief of Rs 45 per share, informed sources said on Tuesday.

LIC will begin roadshows for the much awaited IPO from Wednesday with its top management addressing a press meet in Mumbai.

The IPO will see the government selling 22.13 crore shares or a 3.5 per cent stake. The Centre will raise a little more than Rs 21,000 crore at the upper end of the price band. This will value LIC at slightly over Rs 6 lakh crore, which is less than the Rs 12-15 lakh crore that was once anticipated by the Centre. Valuations in the markets have taken a hit after Russia’s invasion of Ukraine.

Actuarial firm Milliman Advisors LLP India had worked out the embedded value (EV) of LIC, a key metric that is used to determine the valuation of insurance companies at nearly Rs 5.4 lakh crore as on September 30, 2021. The IPO thus values it at 1.1 times the EV.

Though more details of the IPO will be known on Wednesday, it is learnt that investors can apply for a lot of 15 shares and in multiples thereafter.

Activewear float

The initial public offer of athleisure footwear company Campus Activewear was subscribed 1.24 times on the first day on Tuesday. The public offer received bids for 4.1 crore shares against 3.3 crore shares on offer.

The portion meant for Retail individual investors was subscribed 1.88 times, while the category for non-institutional investors received 1.32 times subscription. The qualified institutional buyers portion was subscribed 9 per cent.

Meanwhile, benchmark indices rebounded sharply on Tuesday after sliding for the past two sessions, propelled by bargain hunting in energy, auto and consumption stocks amid a largely supportive trend overseas. The Sensex jumped 776.72 points or 1.37 per cent to end at 57356.61. Similarly, the Nifty rallied 246.85 points or 1.46 per cent to 17200.80.