LIC IPO, India's biggest ever, opened today; 65% issue booked
State-owned insurance giant Life Insurance Corporation of India's Initial Public Offering (IPO) opened for subscription on Wednesday
The largest initial public offering (IPO) in Indian market history, the LIC IPO, was subscribed to 65 percent on May 4, the first day of bidding. LIC policyholders led the opening round of buying in the insurer's IPO, subscribing 1.91 times the part designated for them. Employee restricted shares have been subscribed to 112 per cent, while retail investors have subscribed to 58 per cent.
Non-institutional investors have subscribed for 26 per cent of their granted quota of 3.95 crore shares, while qualified institutional purchasers have purchased 33 percent of the authorised quota. The IPO will remain open from May 4 to May 9.
According to reports, the non-institutional investors' category was subscribed four per cent while retail individual investors' portion was booked 18 per cent. The segment reserved for employees was subscribed 28 per cent while 26 per cent subscription was witnessed in the portion reserved for policyholders.
Investors can bid for a minimum of 15 shares (one lot) valued at Rs 14,235 at the upper end of the issue price.
LIC has allotted around 59.3 million shares to investors at Rs 949 apiece. Shares worth over Rs 8,500 crore worth have been reserved for retail investors, policyholders and employees. The insurance behemoth is relying heavily on bids from small investors.
In the run-up to the IPO rollout, the government trimmed the IPO equity dilution from 5 per cent to 3.5 per cent. This has significantly reduced the issue size from around Rs 60,000 crore to just Rs 20,557 crore.
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At the stock exchanges, LIC shares would get listed on May 17.
According to information coming in, the IPO will take subscriptions even on Saturday (May 7). Experts reasoned that the unusual move was aimed at attracting more investors.
On Monday, LIC garnered Rs 5,627 crore from anchor investors. According to media reports, 71 per cent of Rs 5,627 crore came from domestic mutual funds.
To note, LIC's IPO is India's biggest ever, overshadowing the Rs 18,300-crore PayTM IPO in November 2021. This is despite the fact that the LIC IPO size has been trimmed.