The country's largest life insurer LIC (Life Insurance Corporation of India) 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 on May 4.

Beginning of "LIC 3.0", says LIC Chairman M R Kumar, as quoted by ndtv.com.

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.

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 state-run insurer by selling 22.13 crore shares.

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.

LIC to list on stock exchanges on May 17

LIC is likely to list on the stock exchanges on May 17, a week after its bumper initial public offering (IPO) closes.

As per the final papers filed with Sebi, the allotment of shares to the demat account of bidders will happen by May 16, post which LIC would commence trading of equity shares in the stock exchanges and list "on or about May 17".

While anchor investors will bid for the share sale on May 2, the issue would open for subscription of institutional and retail buyers on May 4 and close on May 9.

The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore.

Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.

Over 9.88 crore shares are reserved for Qualified Institutional Buyers (QIBs) and over 2.96 crore shares for non-institutional buyers.

"Bids can be made for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter," the LIC said in the Red Herring Prospectus approved by Sebi.