The policyholder portion was subscribed more than three times while the employee reserved portion was subscribed nearly two and a half times
The policyholder portion was subscribed more than three times while the employee reserved portion was subscribed nearly two and a half times
New Delhi
The retail portion of the LIC IPO, the country’s largest IPO to date, was fully subscribed during the first bidding hour on Friday’s third day.
The retail individual investor (RII) category generated over 7.2 billion bids versus 6.9 billion shares earmarked for that segment, data on exchanges showed as of 11:36 a.m. Friday.
The segment was thus fully drawn.
However, the proportion of qualified institutional buyers (QIB) and non-institutional investors (NII) only received a moderate response. The share of non-institutional investors was subscribed at 50%, while the share of QIBs is even lower at 40%.
The policyholder portion was subscribed more than three times while the employee reserved portion was subscribed nearly two and a half times.
Overall, the IPO is more than fully subscribed as 17,98,42,980 bids were received versus 16,20,78,067 shares for sale.
LIC’s initial public offering (IPO) will close on May 9th.
The government aims to generate about 21,000 crore by diluting its 3.5 percent stake in the insurance giant.
LIC has set the price range for the issue at ₹902-949 per share. The offer includes a reservation for eligible employees and policyholders. Retail investors and eligible employees receive a rebate of ₹45 per share and policyholders receive a rebate of ₹60 per share.
The shares will be sold via an offer for sale (OFS) of up to 22.13 billion shares. The shares are expected to be listed on May 17th.
LIC has cornered just over £5,627 billion from anchor investors, mostly run by domestic institutions. Anchor Investors (AIs) stake (5,92,96,853 shares) was subscribed at a price of ₹949 per share.
It has reduced its IPO size to 3.5% from a previously decided 5% due to prevailing market conditions. Even after the reduced size of around £20,557 billion, LIC’s IPO will be the largest-ever IPO in the country.
So far, the amount mobilized from Paytm’s IPO in 2021 was the largest ever at 18,300 crore, followed by Coal India (2010) at almost 15,500 crore and Reliance Power (2008) at 11,700 crore.
