It is also the first to enter the market with an issue of Rs 20,000 crore or more which, in its listing on May 17, would command a market cap of Rs 6 lakh crore – possibly the highest for any stock listing.
Ahead of its initial public offering to retail investors, LIC on Tuesday approached its policyholders to inform them about the share sale through SMS and other media platforms.
The IPO was subscribed 0.67 times till 7 pm. The portion reserved for employees and policyholders received a good response, with the issue being subscribed 1.17 and 1.99 times.
Meanwhile, the share of QIBs was subscribed 0.33 times, the share of retail investors 0.60 times.
In danger
The IPO offers 22.13 crore shares for a 3.5% stake in the world’s 10th largest insurer by total assets. Half of these shares are reserved for Qualified Institutional Buyers (QIBs), 15 percent for non-institutional investors and 35 percent for retail investors. 15.81 lakh shares are reserved for employees while 2.21 crore shares are reserved for policy holders.
who pays what
The IPO is priced between Rs 902-949 per share, with investors allowed to bid in sizes of 15 shares and multiples thereof – meaning, at the upper end of the price band, an investor will have to invest a minimum of Rs 14,235. is needed. Retail investors and employees get a discount of Rs 45 per share while policyholders are entitled to a discount of Rs 60 per share. The anchor investor portion, which opened on Monday, is already fully subscribed, raising Rs 5,620 crore.
Retail investors will get an extra day to subscribe
Life Insurance Corporation of India’s initial public offering will also subscribe on Saturday, an unusual move aimed at attracting investors, including retail buyers, for the country’s biggest share sale.
The IPO, which began on Wednesday, will be open till May 9, including on Saturday, said a notification from the National Stock Exchange of India Ltd.
“It’s a little unusual for a share sale. However, this exception is given LIC IPO “Given its sheer size and subdued interest from retail investors,” said Kranti Bathini, chief market strategist at Wealthmills Securities in Mumbai. “It may put some extra pressure on the system. However, the infrastructure of the Indian capital market is set to facilitate bidding on Saturday as well.
game of Thrones
While the LIC IPO ($2.7 billion) is certainly dwarfed in size by the Paytm IPO, which, at Rs 18,300 crore, is now in second place, it is not the biggest this calendar year – which is LG Energy Solutions’ $10.8 billion. IPO was. This is also a far cry from Saudi Aramco’s $25.6 billion IPO, which is the largest IPO in the world to date. Also, watch out for the IPOs of Reliance Jio and Reliance Retail, which are expected to snatch LIC’s crown as India’s biggest IPO.
LIC: Insurance giant
LIC was formed on September 1, 1956 by merging and nationalizing 245 private life insurance companies with an initial capital of Rs 5 crore.
Its product portfolio includes 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The group product portfolio of the insurer comprises 11 products of the group.
As of December 2021, LIC had a market share of 61.6 percent in terms of gross written premiums, 61.4 percent in terms of new business premiums, 71.8 percent in terms of number of individual policies issued and 88.8 percent. Number of group policies issued.
(with inputs from agencies)
Sensex Live Updates