New Delhi, Apr 27 (IANS): The initial public offering (IPO) of the Life Insurance Corporation will be the biggest issue in India despite the reduced offer size, Department of Investment and Public Asset Management (DIPAM) Secretary, Tuhin Kanta Pandey said on Wednesday.

The government has brought down the issue size from 5 per cent to 3.5 per cent.

"Listing of LIC is a part of long-term strategic vision of the government and will be of high value enhancing for the LIC in the long run," Pandey said at a press conference.

The current listing is the first step of long-term value creation for LIC shareholders, he added.

The long-awaited IP) is likely to open for investors on May 4 and will remain open to subscription till May 9.

It will be a landmark public issue in the history of the Indian capital market and is poised to be India's biggest IPO till date.

The IPO values LIC at Rs 6 lakh crore.

"Amidst the volatile environment, the revision in the LIC IPO valuation demonstrates the keenness of the government to deliver on the IPO," Avener Capital said in a note.

Once listed on the exchanges, LIC is expected to be pinned on global portfolio watchlists, believes the financial services provider.

The issue offer of the LIC will be in the price band of Rs 902 to Rs 949. Also, the policyholders will be offered a Rs 60 discount, while for retail investors, the discount will be Rs 45.