Highlight
- The government has slashed its 3.5 per cent stake in the insurance giant
- The government has raised around Rs 21,000 crore from this offer.
- LIC’s IPO was the largest ever initial public offering in the country
LIC, the country’s largest insurance company, had fixed the issue price of LIC shares at Rs 949 for allotment to investors. The issue price band was Rs 902-949 per share. LIC’s IPO closed on 9 May and shares were allotted to the bidders on 12 May.
LIC offered discounts to its policyholders and retail investors. While policyholders got the shares at Rs 889, retail investors got it at Rs 904.
LIC IPO – India’s biggest ever – closed with nearly 3 times subscription, mainly adoption by retail and institutional buyers, but participation from foreign investors remained muted.
So far, the amount raised from Paytm IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC had last month reduced the size of its IPO from 5 per cent to 3.5 per cent due to prevailing market conditions. Even after a low size of over Rs 20,557 crore, LIC IPO is the largest ever initial public offering in the country. ,
The LIC share sale was initially planned to hit the markets in March. But uncertainty in stock markets due to the Russo-Ukraine war pushed the issue into the current fiscal, which began in April.
LIC was formed on 1st September 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.