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LIC IPO subscribed 1.79 times on day 5 but QIBs portion yet to be fully booked – Moneycontrol

Employees and retail investors will receive LIC shares at a discount of Rs 45 to the final offer price, while the discount for policyholders is Rs 60 per share. The price band of the offer is Rs 902-949 per share.

Life Insurance Corporation of India’s (LIC) initial public offering received 1.79 times subscription till May 8, the fifth day of bidding, but the portion reserved for qualified institutional buyers (QIBs) is yet to get fully booked.

Till Sunday, investors have put in bids for 29.08 crore equity shares, against the offer size of 16.2 crore shares as per the subscription data published on exchanges.

The bids received so far are worth Rs 26,408 crore wherein policyholders and retail investors are neck-to-neck in subscription, putting in bids little more than Rs 9,900 crore worth of shares each.

Policyholders have bid 5.04 times the allotted quota and retail investors 1.59 times, while employees bought shares 3.79 times the portion set aside for them, which are worth Rs 542 crore.

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Employees and retail investors will receive LIC shares at a discount of Rs 45 to the final offer price, while the discount for policyholders is Rs 60 per share. The price band of the offer is Rs 902-949 per share.

The reserved portion for non-institutional investors was subscribed 1.24 times, who have invested Rs 3,490 crore so far in the IPO, while QIBs have bid for 67 percent shares of the reserved portion so far. However, they (QIBs) did not participate in the issue on Sunday, may be due to holiday.

The portion of QIB needs to be booked at least 90 percent for any public issue to get fully subscribed. According to experts, the QIB’s book will get fully subscribed on Monday (May 9).

Also read – Foreign funds’ ownership in domestic equities falls to 19.5%, lowest since March 2019

India’s largest life insurance company had opened its Rs 21,000 crore public issue on May 4 and the offer will close on May 9, Monday.

It is a complete offer for sale (OFS) of 22.13 crore equity shares; hence, all the money will go to the Government of India which is offloading a 3.5 percent stake in the company via IPO.

After closing the issue on May 9, LIC will finalise the share allotment next week by May 12. Unsuccessful investors will get refunds by May 13 and equity shares will be credited to the Demat accounts of eligible investors by May 16.

And finally, the listing of LIC on the BSE and NSE will take place on May 17 as per the schedule published in the IPO prospectus.

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