The biggest IPO will now be available for subscription on weekends as well. The Reserve Bank of India (RBI) has directed all banks to keep their window open to allow applications for LIC IPO on Sunday as well. LIC’s IPO came close to being fully subscribed on the second day of the issue.
NSE data showed that LIC IPO Bids were received for 15,78,86,370 equity shares against the proposed size of 16,20,78,067 equity shares – a subscription of 97% against the total.
By the end of May 5, the portion reserved for policyholders and employees was oversubscribed by 2.92 times and 2.07 times, respectively. While the share of retail investors has a membership of 88% against the reserve size, on the other hand, the share of Qualified Institutional Buyers (QIBs) and non-institutional investors has a membership of 40% and 45%, respectively.
Now there will be more days to bid in LIC’s IPO. This will be the first time that a special discount has been given for a public offering.
On Wednesday, the RBI said in a statement, “The Government of India has requested to facilitate bidding for LIC IPO that all bank branches designated to process ASBA (Application Backed by Blocked Amount) applications may be made public in May.” May be kept open for 8, 2022 (Sunday).”
“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 aforesaid purpose,” RBI said.
Earlier, bidding in LIC’s IPO was allowed only on May 7 (Saturday), and was expected to resume on May 9, which would be the last date for the issue. However, now investors can bid for the IPO without any lag.
LIC’s IPO opened on 4th May and is available till 9th May. Thursday was the second day of the IPO.
This issue contains an offer for sale 20,557 crore where the government will sell 3.5% stake. Also, LIC offers 60 per equity share discount to LIC policyholders, and A discount of 45 per equity share was offered to retail investors.
LIC is expected to be listed on May 17.
LIC has been providing life insurance to India for more than six decades and is the largest insurer in India with a market share of 61.6% in terms of premiums and 61.4% in terms of new business premiums. LIC dominates with 71.8% market share in terms of number of individual policies issued, and 88.8% market share in terms of number of group policies issued for the nine months ended December 31, 2021.