New Delhi: The mega issue of the country’s largest insurer Life Insurance Corpration of India (LIC) closed on Monday, with nearly three times subscription at the end of the six-day bidding period. While the institutional investors’ portion has been subscribed 2.83 times, the retail investors’ portion was subscribed 1.99 times, according to the data from the BSE.
The portion reserved for policyholders and employees was subscribed 6.12 and 4.40 times, respectively, while the corporate portion was subscribed 2.91 times. The issue witnessed maxiumum participation from domestic retail and institutional buyers, but foreign investor subscription, however, remained muted.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Monday said the issue was an example of 'Atmanirbhar Bharat' (self-reliant India). The government raised Rs 20,500 crore from sale of 3.5 per cent of its stake in the insurance behemoth.
What is the GMP price?
Grey market premium (GMP) is a premium amount paid at which IPO shares are traded before it is listed on the bourses. The shares of LIC are available at a premium (GMP) of Rs 16 in the grey market on Tuesday, according to news reports.
When will the shares get allotted?
With the bid closing now, the finalisation of basis of share allotment of the issue is expected to take place on Thursday, May 12, according to the information given in the red herring prospectus (RHP).
Once shares get allotted, the credit of shares to demat account of bidders will be done on May 16. The shares of the company will be listed on stock exchanges, BSE and NSE, on Tuesday, May 17, 2022.
The registrar for LIC issue is KFin Technologies, therefore, investors can check the allotment application on its website here or on the BSE website.
LIC reduced its IPO size from 5 per cent to 3.5 per cent due to the prevailing choppy market conditions, which was substantially lower than the earlier projection of about Rs 60,000 crore.
(With inputs from PTI)