The price band for the issue has been fixed at ₹902-949 per equity share.
The price band for the issue has been fixed at ₹902-949 per equity share.
The public offer of the country’s largest IPO LIC was fully subscribed on the second day of bidding on Thursday.
Against the offer of 16,20,78,067 shares, 16,25,35,125 bids were received on the stock exchanges, as of 6.24 pm, making the public issue fully subscribed.
Of the total, the share of policyholders was subscribed a little more than three times, while that for employees was subscribed 2.14 times.
The Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) segment has received good response so far. The non-institutional investors segment was subscribed 46%, while the share of QIBs was slightly less than 40%.
Retail individual investors bought around 91 per cent of the 69 million shares set aside for this segment.
The initial public offering (IPO) will close on May 9.
The sale of shares is done through an offer-for-sale (OFS) of 22.13 crore equity shares. The shares are likely to be listed on May 17.
The government aims to generate around Rs 21,000 crore by reducing its 3.5% stake in the insurance sector.
LIC has fixed a price band of ₹ 902-949 per equity share for the issue. The offer includes reservation for eligible employees and policyholders. Retail investors and eligible employees will get a discount of Rs 45 per share, while policyholders will get a discount of Rs 60 per share.
LIC Public Offer will also be open for subscription on weekends so that people can participate in the mega IPO of the state-owned insurer.
This is perhaps the first time a special discount has been given to a public offering.
Earlier, bidding was allowed only on May 7 (Saturday).
To facilitate this, the Reserve Bank of India (RBI) directed all ASBA-specified bank branches to remain open to the public on Sunday to facilitate the processing of applications for LIC’s initial public offering.
The country’s biggest ever offering, the initial public offering (IPO) of state-owned LIC opened for subscription by retail and institutional investors on Wednesday.
Government has requested to facilitate bidding for LIC IPO that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday) Yes, RBI had said in one. statement on Wednesday.
“The matter has been examined and it has been decided that banks may open all their ASBA designated branches on May 8, 2022 (Sunday) for the above purpose.”
Generally, ASBA is the mechanism through which investors apply for shares in a public issue.
LIC reduced the size of its IPO to 3.5% from the earlier fixed 5% due to prevailing market conditions. Despite the low size of around ₹20,557 crore, LIC IPO is going to be the largest ever initial public offering in the country.
So far, the amount raised from Paytm’s IPO in 2021 was the largest at ₹18,300 crore, followed by Coal India (2010) at ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.
LIC was formed on September 1, 1956 by merging and nationalizing 245 private life insurance companies with an initial capital of Rs 5 crore.
Its product portfolio includes 32 individual plans (16 participating and 16 non-participating) and seven individual optional rider benefits. The group product portfolio of the insurer comprises 11 products of the group.
As of December 2021, LIC had a market share of 61.6% in terms of premium or gross written premium, 61.4% in terms of new business premiums, 71.8% in terms of number of individual policies issued and 88.8% in terms of numbers . Group policies were issued.