The preliminary public provide (IPO) of Life Insurance coverage Company of India (LIC) was subscribed by 1.66 occasions on the fourth day of the difficulty on Saturday, Could 7, 2022, until 07:00 PM, in response to knowledge posted on inventory exchanges.
The nation’s biggest-ever IPO acquired 26,83,18,335 bids in opposition to 16,20,78,067 shares on provide. The Certified Institutional Purchaser (QIB) quota was booked 0.67 occasions and Non-Institutional Investor (NII) parts acquired bids by 1.08 occasions on the fourth day.
Retail particular person traders bid for 10.06 crore shares as in opposition to 6.9 crore shares put aside for this phase — translating into an oversubscription of 1.43 occasions.
Of the entire, the policyholders’ portion was subscribed a bit of over 4 and half occasions, whereas that for workers was subscribed over three and half occasions.
LIC has mounted the value band at Rs 902-949 per fairness share for the difficulty. The provide features a reservation for eligible workers and policyholders. The retail traders and eligible workers will get a reduction of Rs 45 per fairness share, whereas policyholders will get a reduction of Rs 60 per share.
LIC’s public provide will stay open for the subscription even on weekend to allow folks to take part within the mega IPO of the state-owned insurer. The IPO will shut on Could 9.
The federal government goals to generate about Rs 21,000 crore by diluting a 3.5 per cent stake within the insurance coverage behemoth.
LIC lowered its IPO dimension to three.5 per cent from 5 per cent determined earlier as a result of prevailing uneven market circumstances. Even after the lowered dimension of about Rs 20,557 crore, LIC IPO goes to be the largest preliminary public providing ever within the nation.
To this point, the quantity mobilised from the IPO of Paytm in 2021 was the biggest ever at Rs 18,300 crore, adopted by Coal India (2010) at practically Rs 15,500 crore and Reliance Energy (2008) at Rs 11,700 crore.
As of December 2021, LIC had a market share of 61.6 per cent by way of premiums or gross written premium, 61.4 per cent by way of new enterprise premium, 71.8 per cent by way of the variety of particular person insurance policies issued, and 88.8 per cent by way of the variety of group insurance policies issued.
With PTI Inputs