The much anticipated mega initial share sale of LIC has been announced

and the issue will open on 4 May, according to a PTI report. The bidding for IPO will go on till 9 May.

The IPO, through which the government will sell 3.5% stake 

in state-owned LIC, will fetch ₹21,000 crore to the exchequer.

The stake sale at 3.5% will fetch far lower than the ₹50,000 crore estimated before Russia invaded Ukraine. 

LIC is valued at ₹6 lakh crore in IPO, before the value was around ₹17 lakh crore.

As per Sebi norms, companies with valuation over ₹1 lakh crore have to sell 5% stake in IPO.

The government has also filed papers with Sebi seeking exemption from the norm, the PTI report noted.

The government had planned to sell 5% stake in LIC in February. 

But the Russia-Ukraine war has reduced the size of the IPO.

LIC IPO would contribute a major chunk to the budgeted disinvestment proceeds in the current fiscal.