India’s LIC price IPO at the top of the range shown: source

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The Indian company Life Insurance Corp. (LIC) has priced its initial public offering at the top of the indicated range, at 949 rupees ($12.28), a source familiar with the matter said on Friday.

The state-owned insurance giant is expected to go public on May 17.

LIC did not immediately respond to an email request for comment. The source, not authorized to speak to the media, did not wish to be identified.

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The price range of the issue had been set between 902 and 949 rupees per share. LIC offered a rebate to employees and retail investors of Rs 45 per share while policyholders received a rebate of Rs 60 per share.

LIC shares were trading at a discount of around 30 rupees to the upper end of the price range, a sharp decline from a premium of 100 rupees earlier this month.

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The country’s biggest-ever IPO was oversubscribed 2.95 times as six days of bidding ended on May 9. The government plans to raise up to $2.7 billion – a third of its original target – by selling a 3.5% stake in the company.

The 66-year-old company dominates the insurance industry in India, with over 280 million policies. It was the world’s fifth-largest insurer in terms of insurance premium collection in 2020, the latest year for which statistics are available.

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($1 = 77.3075 Indian rupees)

(Additional reporting by Nivedita Bhattacharjee in Bengaluru; Editing by Uttaresh.V and Bradley Perrett)

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