India's biggest public issue to date by the country's largest insurance provider – the Life Insurance Corporation (LIC) initial public offering (IPO) – opens to primary markets today. The LIC IPO was opened to anchor investors on May 2. The government, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of five per cent as listed in the previous Draft Red Herring Prospectus (DRHP). 

With the latest public issue, the government aims to provide a significant contribution to the government's disinvestment proceeds this fiscal.

Here are things to note before the IPO opens:

IPO date: The LIC IPO will be open for bidding to the general public from May 4 to May 9. 

Price band: The LIC IPO price band has been fixed at Rs 902 to Rs 949 per equity share. However, policyholders and LIC employees applying for the public issue will get a Rs 60 and Rs 45 discount, respectively.

LIC IPO GMP: Market observers told LiveMint that the LIC IPO grey market premium (GMP) is currently at Rs 85, Rs 16 higher from the previous day.

IPO size: The Government of India has planned to raise Rs 21,008.48 crore from the public issue, making it the country's biggest IPO so far.

IPO lot size and limit: Applicants will be able to apply in lots, where one IPO lot comprises 15 LIC shares. An applicant can apply for a minimum of one and a maximum of 14 lots or 210 shares. The minimum amount required to apply for the IPO, therefore, is Rs 14,235 ( i.e. Rs 949 x 15). The maximum bid amount for retail investors, policyholders and LIC employees has been capped at Rs 2 lakh.

IPO allotment date: The share allotment is likely to be announced on May 12.

LIC IPO listing: The LIC shares are likely to be listed on BSE and NSE on May 17.