LIC IPO Update: Policyholders rush in, overall subscription at 67%

Updated : May 04, 2022 21:34
|
PTI

LIC's public offer, the country's biggest-ever IPO, saw the policyholders' portion being oversubscribed on the first day itself on Wednesday, though overall subscription stood at 67 per cent.

The government aims to generate about Rs 21,000 crore by selling 3.5 per cent stake in the insurance behemoth.

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LIC's initial public offering (IPO), open for retail and institutional investors, is set to close on May 9. The issue period also includes bidding on Saturday, May 7.

The portion reserved for policyholders was subscribed 1.9 times, while that for employees was fully subscribed during the first day itself, as per data available on the BSE.

LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60.

However, demand from qualified institutional buyers (QIBs) and non-institutional investors was muted. The non-institutional investors' portion was subscribed 27 per cent while QIBs' portion was slightly higher at 33 per cent.

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Retail Individual Investor category picked up nearly 60 per cent of the 6.9 crore shares set aside for this segment.

The offer received bids for 10,86,45,360 shares against the offered 16,20,78,067 equity shares (excluding shares offered to anchor investors), as per data available on the bourses at 7 pm.

The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17.

LICLIC IPO

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