LIC IPO: Issue Fully Subscribed; Policyholders 3.01 Times, Staff 2.14 Times On Day 2

LIC listing: The state-run insurer garnered Rs 5,627 crore at the upper end of the price band from anchor investors on Monday

The central government, seeks to raise Rs 21,000 crore from the LIC public listing, will dilute 3.5 per cent stake in the insurer. Image: Getty

Source : Getty

New Delhi: The initial public offering (IPO) of Life Insurance Corporation of India (LIC), the country’s largest life insurance firm, on Thursday subscribed fully on Day 2. So far, the issue has so far received bids for 16.24 crore equity shares against offer size of 16.2 crore equity shares, according to the BSE data.

The portion set aside for policyholders portion has been subscribed 3.02 times, staff 2.14 times, and retail investors subscribed 91 per cent, while QIBs bid for 40 per cent shares of their allotted quota. The NII lapped up 46 per cent of their portion.

The state-run insurer garnered Rs 5,627 crore at the upper end of the price band from anchor investors on Monday. This amount was primarily led by domestic institutions. The portion reserved for anchor investors (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.

The LIC IPO was launched on Wednesday. The issue will remain open till May 9 (Monday).

A notification by the National Stock Exchange said that the LIC IPO will take subscriptions even on Saturday.

The central government, seeks to raise Rs 21,000 crore from the LIC public listing, will dilute 3.5 per cent stake in the insurance behemoth.

The IPO was slated for March this year (last fiscal year), however, was postponed till May because of geo-political tensions. The Centre wanted to divest 5 per cent stake in the insurance firm. But ongoing conflict between Russia and Ukraine coupled with volatile stock market and rising inflation rates had compelled the government to postponed the listing.

LIC’s performance in contrast to that of the $2.5-billion IPO of Paytm, which saw a sluggish start and was fully sold only on the last day of the issue.

Rajeev R Shah, chief executive officer at RBSA Advisors told Bloomberg, “By pricing the issue at a lower valuation and discounts to policyholders, the government has ensured its success.”