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Tuesday, May 17, 2022

IPO Wrap: LIC IPO subscribed 2.95 times on final day led by demand from policyholders and employees

LIC IPO subscription status: The blockbuster initial public offering (IPO) of India's largest life insurer Life Insurance Corporation of India (LIC) was subscribed 2.95 times on the final day.

By: Express Web Desk | New Delhi |
Updated: May 9, 2022 7:24:23 pm
lic ipo, lic ipo newsAn exterior view of Life Insurance Corporation of India (LIC) eastern zonal head office building in Kolkata, India, February 14, 2022. (REUTERS)

LIC IPO subscription status: India’s largest initial public offering (IPO) of insurance sector behemoth Life Insurance Corporation of India (LIC), which was launched last Wednesday met with a positive response by the investors across the board as it got subscribed 2.95 times on the final day, according to the data available on the BSE.

The Rs 21,000 crore offer received bids for over 47.83 crore (47,83,67,010) shares against the total issue size of over 16.20 crore (16,20,78,067) shares, the data showed.

The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 2.83 times, while those of non institutional investors was subscribed 2.91 times and that of retail individual investors (RIIs) was subscribed 1.99 times, the data showed. Apart from these, the policyholders portion was subscribed 6.12 times while the employees segment was subscribed 4.40 times.

The LIC IPO is entirely an offer-for-sale (OFS) where the central government is selling 22.13 crore (22,13,74,920) shares or 3.5 per cent of its stake in the life insurer.

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The 6-day blockbuster IPO had opened for subscription on Wednesday, May 4, 2022, and concluded at 7 pm today. It has a price band of Rs 902-949 per share and came with a discount of Rs 60 per share for policyholders and Rs 45 apiece for retail investors and employees. The LIC IPO was kept open even this past Saturday and Sunday to allow people to participate. This was perhaps for the first time a special dispensation is granted to any public offer.

Before heading into the IPO, the life insurance giant had raised over Rs 5,627 crore from the anchor investors.

LIC is the country’s oldest and largest life insurance firm. It was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. LIC now manages around Rs 40 lakh crore assets and is the fifth-largest life insurer globally and the largest asset manager in the country.

Going ahead, investors will now look forward to the share allotment date of the issue. The finalisation of the basis of allotment for LIC is expected to take place on Thursday, May 12, 2022, as per the information provided in the red herring prospectus.

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