Kolkata, Apr 29:
The proposed maiden public offer by state-owned Life Insurance Corporation of India (LICI) has received interests from more than 25 anchor investors both foreign and domestic, an official said here on Friday.
The government plans to dilute 3.5 per cent of its stake in LIC to raise Rs 21,000 crore from the market next month. During the formation of LIC in 1956, the government had infused Rs 5 crore as seed capital.
An official of one of the lead managers said 50 per cent of the offer is reserved for QIPs, including anchor investors. He said 35 per cent is being reserved for retail investors, 15 per cent for high networth individuals and ten per cent for policy holders.
The anchor book will be opened on May 2, he said.
Thirty per cent of the portion reserved for QIPs is reserved 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 per cent.
To a query, he said “the government did not go for additional issue of shares by LIC but instead opted for dilution as the corporation is cash rich with healthy solvency”.
Mohanty said the Centre, in the last two years, had not taken dividend and ploughed back Rs 5,600 crore to the life insurer.
Post IPO, LIC will be run by a professional board with nine independent directors who have been already inducted. 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 Rs 40 lakh crore as assets under management (AUM) and reserves of Rs 30 lakh crore. (PTI)
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