LIC IPO subscribed 2.95 timesAuthor: Nishu May 10, 2022
According to stock exchanges data, the initial public offering (IPO) of Life Insurance Corporation of India (LIC) got subscribed 2.95 times on the last day of the offer. The government will raise Rs 21,000 crore from this IPO at the upper price band.
The IPO opened for subscription on May 4 and despite volatile market conditions, saw strong response from policyholders of LIC, who have subscribed 60% of its issue size, followed by employees, retail investors and other investor categories.
The portion reserved for eligible policyholders was subscribed 6.12 times and for eligible employees was subscribed 4.4 times, while the retail category saw 1.99 times subscription; The non-institutional category saw 2.91x subscription and 2.83x qualified institutional buyers.
As per data available on stock exchanges at 7 pm, the offer received bids for 47,83,67,010 shares against an offer size of 16,20,78,067 equity shares, excluding shares offered to anchor investors.
The IPO consisted of an offer by the President of India to sell up to 221,374,920 equity shares of face value of ₹10. The shares will be listed on BSE and NSE.
Girirajan Murugan, CEO, FundsIndia said, “The participation from Tier 2 and 3 cities for LIC IPO was high.” “We can attribute this to the deep penetration of LIC agents and policyholders. We have also received a good number of applications from the newly formed Union Territories.
“We are sure that this will pave the way for larger retail participation in the secondary markets. The demat accounts opened to apply for LIC IPO will be used to make large investments in equity markets,” he added.