LIC IPO has received 81 percent subscriptions so far on Day 2
On Thursday, the Life Insurance Corporation of India’s (LIC) 21,000 crore IPO. India’s most significant public issue, was subscribe 81% on the second day of bidding. On Thursday, the Life Insurance Corporation of India’s (LIC) 21,000 crore IPO, India’s most significant public issue, was subscribe 81% on the second day of bidding. The initial share sale, which will be extend for an additional day on Saturday (May 7), will end on May 9. On May 17, LIC shares will be list on stock exchanges.
According to exchange data, as of 12:18 p.m., investors bid for 13.17 crore shares, compared to the total 16.20 crore shares on offer. With the portions reserved for employees and policyholders already fully subscribed.
Policyholders were subscribe to 2.47 times, employees 1.63 times. Retail investors 0.75 times, non-institutional investors 0.32 times, and qualified institutional buyers 0.34 times.
The issue’s price range has been set between 902 and 949 per share.
Employees and retail investors will receive a 45 percent discount on the subscription. In addition, LIC policyholders will receive a 60-per-share discount.
The government intends to raise 21,000 crores by diluting a 3.5% stake in LIC.
The valuation for an IPO would be the highest ever in the Indian market. Before this, the most significant fundraising was see in Paytm’s IPO last year at 18,300 crores and Coal India in 2010 at 15,200 crores.
Due to the current market conditions, the country’s largest insurer reduced the size of its IPO from 5% to 3.5%.
For several months, LIC has informed the public about the IPO through various channels, including print and television advertisements. It has also contacted policyholders via SMS and other means to inform them of the share sale.
The insurer had raised approximately 5,627 crores from anchor investors before the IPO.
The LIC was formed on September 1, 1956, by merging and nationalizing 245 private life insurance companies, with an initial capital of 5 crores.
