The initial public offering (IPO) of Life Insurance Corporation of India opened for subscription today. The public issue will close on May 9. The insurance behemoth stated that it has garnered around Rs 5,627 crore from anchor investors ahead of the IPO.
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As of 6:48 pm, the IPO of LIC was subscribed 65 per cent in over eight hours on the first day of bidding. (Also Read: LIC IPO: Overwhelming Demand On Day 1, With Over 60% Bids And Counting)
Retail individual investors’ portion was booked 0.58 times and non-institutional investors’ category was subscribed 0.26 times. Employee reserved and policyholder reserved portions were fully subscribed, 1.13 times and 1.92 times, respectively.
The LIC IPO will take subscriptions even on Saturday (May 7), an unusual move aimed at attracting more investors. The shares would get listed at the stock exchanges on May 17.
The price band for LIC IPO is Rs 902-949 per equity share. LIC policyholders will get a discount of Rs 60 per equity share, while retail investors and employees will get a discount of Rs 45 on each share. Investors can bid for a minimum of 15 shares (one lot) for Rs 14,235 at the upper end of issue price.
The Centre plans to raise Rs 21,000 crore by diluting a 3.5 per cent stake in LIC.
For an IPO, the valuation would be the highest ever in the Indian market. Before this, the highest fundraise was seen in Paytm IPO last year at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.
LIC has approached its policyholders through SMS and other medium to inform them about the share sale.
LIC has been informing about the IPO for several months through various channels including print and TV advertisements.
The country’s largest insurer reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.