LIC IPO: State-Run Insurer Raises Over Rs 5,000 Crore Through Anchor Investors

A total of 5.93 crore shares were allotted by the state-run insurance behemoth to 123 investors at Rs 949 apiece

More than 71 per cent of the anchor book portion for LIC IPO came from domestic mutual funds. Image: Getty

Source : Getty

New Delhi: The much awaited initial public offering (IPO) of Life Insurance Corporation (LIC), which was launched on Monday (May 2) for anchor investors, has been fully subscribed, according to a stock exchange filing by the insurer.

LIC has raised around Rs 5,620 crore from anchor investors, the PTI reported.

According to the disclosure, more than 71 per cent of the anchor book portion came from domestic mutual funds (MFs).

A total of 5.93 crore shares were allotted by the state-run insurance behemoth to 123 investors at Rs 949 apiece.

Some marquee anchor investors who took part in the anchor book included Government of Singapore, Government Pension Fund Global, BNP Investments LLC, Monetary Authority of Singapore, Societe Generale, Invesco India, and Saint Capital Fund.

SBI Mutual Fund, ICICI Prudential, SBI Life Insurance, Aditya Birla Sun Life, Axis Mutual Fund, HDFC Trustee, Nippon Life, Kotak Mahindra Life Insurance, L&T Mutual Fund, Tata Investmnet Corporation, UTI Mutual Fund, Sundaram Mutual Fund, IDFC MF, and Bajaj Allianz General Insurance were some of the domestic investors which also showed strong interest in LIC IPO.

In its filing with the BSE on Tuesday, the LIC said, “Of the total allocation, 4.21 crore equity shares (or 71.12 per cent of total anchor book) were allocated to 15 domestic mutual funds through 99 schemes.”

For general public, the IPO will be open for bidding from May 4-9.

The government seeks to raise Rs 21,000 crore from the LIC IPO. However, the amount is quite lower than its earlier projection of Rs 60,000 crore.

The price band of for the IPO is fixed at Rs 902-Rs 949 per equity share.

Market regulator Securities and Exchange Board of India (Sebi) has given permission to the government to offload 3.5 per cent stake in LIC through the IPO.