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Street Buzz: LIC IPO likely from 10 March, issue size seen at Rs 65,400 crore; Check out more

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The IPO of Life Insurance Company of India (LIC) is likely to take place between March 10 and 14, and according to market rumors, the share sale could be worth around Rs 65,400 crore in the price range of Rs 2,000-2,100 per share rupee.

Earlier, the government filed a draft LIC document for the country’s largest IPO on Sunday, denying rumours of an offering date, saying any valuation decision would be made after a roadshow with investors and the listing would be completed in March.

However, speculation is rife about key aspects of the public offering, which could reserve 316 million shares for LIC’s 283 million policyholders.

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The state-owned insurance giant, which has the nation’s largest network of 1.35 million registered agents, will try to lure policyholders to the IPO with a rumored 10 percent discount. To be sure, many policyholders will be first-time investors in the stock.

Let’s take a look at the LIC public release rumor mill in overdrive.

Issue Opens: March 10 

Issue Closes: March 14 

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Issue Price: Rs 2,000-2,100 per share

Issue Size: 31,62,49,885 shares

Offer-for-Sale: 31,62,49,885 shares which is equal to Rs 65,416.29 crore

Discount: 10 percent for employees and policyholders

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Price Band Announcement: March 7 

Anchor Investors Allotment: March 9

Market Lot: Seven shares

Employees: 1.58 crore shares (10 percent discount = Rs 1,890)

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Policyholders: 3.16 crore shares (10 percent discount = Rs 1,890)

Anchor: 8.06 crore shares = Rs 16,935.18 crore 

Qualified Institutional Bidder: 5.37 crore shares = 11,290.12 crore 

Non-Institutional Investors: 4.03 crore shares = 8,467.59 crore 

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Retail Individual Investor: 9.41 crore shares = 19,757.71 crore Listed Peers: SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company

Complete News Source : Money Control

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