The LIC subscription will close on May 9.New Delhi:
The record Rs 21,000 crore initial public offering (IPO) by Life Insurance Corporation of India (LIC) was oversubscribed. As of 10:57 am today, the IPO was booked 1.09 times as investors bid for 17.64 crore shares by the end of bidding on the third day of subscription for India’s largest public issue, compared with 16.20 crore shares on offer, exchange data showed. LIC set the initial price band at Rs 902 to Rs 949 a share. Here’s Your 10-Point Cheat-Sheet To This Big Story:The portion set aside for policyholders was subscribed 3.30 times, employees by 2.40 times, retail investors by 1 times, non-institutional investors by 0.49 times and qualified institutional buyers by 0.40 times.The LIC subscription, set to close on May 9, is offering a discount to employees and retail investors of Rs 45 per share. LIC policyholders will be offered a discount of Rs 60 per share.The state-insurer’s mega IPO will remain open for subscription on Saturday and Sunday as well.For an IPO, the Rs 21,000 crore valuation would be the highest ever in the Indian market. Before this, the highest fundraise was seen in Paytm IPO last year at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.The country’s largest insurer reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition.LIC has been informing about the IPO for several months through various channels, including print and TV advertisements. It has also approached its policyholders through SMS and other medium to inform them about the share sale.Moody’s Investors Service said LIC’s IPO was credit-positive for India’s life insurance sector.Demand for the IPO continued amid the interest rate hike by Reserve Bank of India and U.S. Federal Reserve.The insurer had garnered around Rs 5,627 crore from anchor investors ahead of the IPO.LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.
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