Mumbai: Country’s largest life insurer LIC on Wednesday set the price band at Rs 902-949 per share for its Rs 21,000 crore initial public offering (IPO), which will open for subscription on May 4.

At the upper end of the price band the government will garner around Rs 21,000 crore.

With this IPO, which is through an offer-for-sale (OFS) route, the government is looking to divest its 3.5 per cent stake in the insurer by selling 22.13 crore shares.

Speaking on the occasion, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said listing of LIC is part of the long-term strategic vision of the government and will highly enhance the value of the corporation in the long-run.

“This (LIC IPO) is right sized, considering the capital market environment and will not crowd out capital supply given the current market environment,” Pandey said here on Wednesday.

Even after the reduced size of about Rs 20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country, he said.

In February, the government had planned to sell a 5 per cent stake in the company.

“The decision to list now has taken into account the combination of multiple factors, including market demand, stabilizing market conditions, reducing volatility, domestic flows and the corporation’s financial performance,” he said.

Pandey said the market is undoubtedly benefiting from strong structural tailwind given concerns in other markets.

The market has recovered from temporary shock due to global geopolitical events seen earlier.

In the IPO, the retail investors and eligible employees will get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per equity share.

The issue will open for subscription on May 4 and to close on May 9. The bid lot for the issue would be 15.

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