LIC IPO: Share Bids Oversubscribed By 1.79 Times On Day 5 Of Listing, Offer To Close On Monday

LIC IPO: According to the data posted on stock exchanges at 7 pm, 29,08,27,860 bids were received against 16,20,78,067 shares on offer, reported the news agency.

LIC IPO: 29,08,27,860 bids were received against 16,20,78,067 shares on offer. (Representational)

Source : AFP

New Delhi: The Initial Public Offering (IPO) for Life Insurance Corporation of India, the country’s biggest public offer, was subscribed 1.79 times on the 5th day of the offer on Sunday, reported news agency PTI. 

According to the data posted on stock exchanges at 7 pm, 29,08,27,860 bids were received against 16,20,78,067 shares on offer, reported the news agency.

While other fractions have been oversubscribed, the Qualified Institutional Buyer (QIB) category is yet to be fully subscribed. Bids were received for 0.67 per cent of the shares earmarked for the segment, showing a poor response.

In the non-institutional investors (NIIs) category, a total of 3,67,73,040 bids were received for 2,96,48,427 shares reserved for the category, reflecting a subscription of 1.24 times.

Against 6.9 crore shares offered to Retail Individual investors, a bid of 10.99 crore was received translating into an over-subscription of 1.59 times. Of the total, the policyholders' portion was subscribed 5.04 times, while that for employees was subscribed 3.79 times.

The price band has been fixed between Rs 902 and 949 per equity share by the LIC. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60 per share.

By diluting a 3.5 percent stake in the insurance behemoth, the government aims to generate about Rs 21,000 crore through the Offer for Sale (OFS) which will close on Monday. 

The IPO size was reduced from 5 percent to 3.5 percent after prevailing choppy market conditions, but even then the LIC IPO is set to be the biggest initial public offering at a reduced size of about Rs 20,557.

So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.