New Delhi: The initial public offering (IPO) of Life Insurance Corporation (LIC), which was opened for subscription on Wednesday (May 4), witnessed an overwhelming response with LIC IPO is subscribed 67 per cent on first day of bidding, according to news reports.
During the day, the LIC policyholders lead initial bout of buying in the state-run insurer’s IPO. They have subscribed 1.99 times the portion reserved for them, whereas the LIC employees’ reserved portion has been subscribed 117 per cent.
The retail investors’ portion has been subscribed 60 per cent, non-institutional investors have subscribed 27 per cent of their portion, while qualified institutional buyers bought 33 per cent of allotted quota of 3.95 crore shares.
Off the 16.20 crore shares on offer, around 10.86 crore equity shares were snapped on the first day of bidding, as per the 7:00 pm data available on the bourses.
On Monday, LIC raised Rs 5,627 crore at the upper end of the price band from anchor investors, which was led primarily by domestic institutions. The portion reserved for anchor investors (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.
The IPO, which was launched on Wednesday, will remain open till May 9 (Monday).
According to a notification from the National Stock Exchange, LIC IPO will take subscriptions even on Saturday.
The central government is looking to garner Rs 21,000 crore from the LIC stake sale by diluting 3.5 per cent in the insurance company.
Previously, the government wanted to divest 5 per cent stake in LIC, however, because of ongoing conflict between Russia and Ukraine, coupled with volatile market conditions and rising inflation rates had compelled the government to postponed the IPO till May.