LIC IPO which is about the size of 21,000 crores is available for subscription from May 4, making it the biggest public offering ever in the market. The IPO was supposed to be allowed for bidding on Saturday (May 7) and was later resumed on May 9. However, now the IPO will be allowed to bid on May 8 as well.
In a statement, the RBI said, “The Government of India has requested to facilitate bidding for LIC IPO that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be made available to the public on May 8.” May be kept open for 2022 (Sunday).”
That is, LIC’s IPO will be open for subscription on Saturday and Sunday as well.
“The matter has been examined and it has been decided that banks may keep all their ASBA designated branches for opening on May 8, 2022 (Sunday) for the above purpose,” RBI said.
LIC IPO open on 4th May and is available till 9th May. The IPO was fully subscribed on Thursday, which is the second day of the issue.
Data given on NSE today showed that the IPO received total bids of 16,24,09,785 equity shares against the proposed size of 16,20,78,067 equity shares – a subscription of over 100%. A strong appetite was observed among policyholders followed by employees and retail investors.
The share reserved for policyholders was oversubscribed by 3.02 times, while the share for employees was oversubscribed by 2.14 times. Retail investors’ share accounted for 91% against the allotted shares, on the other hand, Qualified Institutional Buyers (QIBs) and non-institutional investors (NIIs) subscribed between 40% and 46% against their reserve size.
With more days allowed for IPO bidding, the performance of QIBs and NIIs will be closely monitored.
As per SEBI circular, ASBA is an application made by an investor empowering Self Certified Syndicate Bank (SCSB) to block the application amount in the bank account for subscribing to an issue. If an investor is applying through ASBA, his application money will be debited from the bank account only when his application is selected for allotment on the basis of allotment.
Meanwhile, SCSB is one such bank which is recognized as a bank capable of providing ASBA services to its customers.
Check out the list of ASBA designated banks as per the latest update of SEBI as on April 27, 2022.
As per the website of SEBI, at present around 60 branches are providing ASBA services.
These are – Ahmedabad Mercantile Co-op Bank, AU Small Finance Bank, Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Barclays Plc, BNP Paribas, Canara Bank, Central Bank of India, Citibank, City Union Bank, Credit Suisse, DBS Bank, Deutsche Bank, Deutsche Bank AG, Dhanlaxmi Bank, Equitas Small Finance Bank, Federal Bank, GP Parsik Sahakari Bank, HDFC Bank, HSBC, ICICI Bank and IDBI Bank.
In addition, IDFC First Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, JP Morgan Chase, Bank, NA, J&K Bank, Janata Sahakari Bank, Karnataka Bank, Karur Vasya Bank, Kotak Mahindra Bank, Mehsana Urban Co- Bank. Operative Bank, Nutan Nagrik Sahakari Bank, Punjab National Bank, Rajkot Nagrik Sahakari Bank, RBL Bank, South Indian Bank, Standard Chartered Bank, Syndicate Bank, and SVC Sahakari Bank among others.
Others are Tamil Nadu Mercantile Bank, Kalupur Commercial Co-operative Bank, Saraswat Co-operative Bank, Surat People’s Co-op Bank, TJSB Sahakari Bank, UCO Bank, Union Bank of India and Yes Bank.
LIC IPO includes an offer for sale up to 20,557 crore where the government will sell 3.5% stake. The price band of IPO is from 902 949 per equity share. lic offer 60 per equity share discount to LIC policyholders, and A discount of 45 per equity share was offered to retail investors.
LIC is expected to be listed on May 17. LIC will compete against other private companies such as SBI Life Insurance, HDFC Life Insurance and ICICI Prudential Life Insurance in the stock exchanges.