Retail portion of LIC IPO fully subscribed on Day 3; Offer ends on Monday


LIC’s public offering, the country’s largest IPO to date, saw a full subscription of the retail portion on the third day of Friday.

The total issue was 1.38 times subscribed, as announced at 7 p.m.

Against shares offered bids were received.

However, the Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) parts still have to be signed in full.

The subscription rate for the non-institutional segment was 76%, while that for the QIB portion was lower at 56%.

Retail investors bid for 8.53 billion shares versus 6.9 billion shares earmarked for this segment — an oversubscription of 1.23 times.

Of the total, the policyholders’ portion was subscribed just over four times and the employee’s portion three times.

LIC has set the price range for the issue at ₹902-949 per share. The offer includes a reservation for eligible employees and policyholders. Individual investors and eligible employees receive a rebate of ₹45 per share, while policyholders receive a rebate of ₹60 per share.

LIC’s public offering will remain open for subscription over the weekend to allow people to participate in the state insurer’s mega IPO.

The initial public offering (IPO) ends on May 9th.

The government is aiming to generate about 21,000 crore by diluting its 3.5% stake in the insurance giant.

LIC reduced its IPO size to 3.5% from a previously decided 5% due to the prevailing unsettled market conditions. Even after the reduced size of about 20,557 crore, LIC’s IPO will be the largest-ever IPO in the country.

So far, the amount mobilized from Paytm’s 2021 IPO has been the largest at 18,300 crore, followed by Coal India (2010) at almost 15,500 crore and Reliance Power (2008) at 11,700 crore.

LIC was formed by the merger and nationalization of 245 private life insurance companies on 1st September 1956 with an initial capital of £5 crore.

The product portfolio includes 32 individual plans (16 participating and 16 non-participating) and seven individual optional driver benefits. The insurer’s group product portfolio comprises 11 group products.

As of December 2021, LIC had a market share of 61.6% in terms of premiums or gross premiums written, 61.4% in terms of new business premiums, 71.8% in terms of number of individual policies issued and 88.8% in terms of number of the issued group policies.

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