LIC has fixed a price band of Rs 902-949 per equity share for the issue.
LIC’s public offering, the country’s biggest ever IPO, witnessed full subscription of the retail segment for the third day on Friday. Overall, the issue was subscribed 1.38 times, according to data posted on stock exchanges at 7 pm. Against 16,20,78,067 shares on offer, 22,36,98,915 bids were received.
However, the portions of Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) are yet to be fully subscribed.
Membership for the non-institutional investors segment was 76 per cent, while it was lower at 56 per cent for the QIBs segment. Retail individual investors bid for 8.53 crore shares against 69 million shares set aside for this segment – translating into oversubscription of 1.23 times. Of the total, the share of policyholders was subscribed a little more than four times, while that for employees was subscribed three times.
LIC has fixed a price band of Rs 902-949 per equity share for the issue. The offer includes reservation for eligible employees and policyholders. Retail investors and eligible employees will get a discount of Rs 45 per share, while policyholders will get a discount of Rs 60 per share. LIC’s public offering will be open for subscription over the weekend as well so that people can participate in the state-owned insurer’s mega IPO. The initial public offering (IPO) will close on May 9.
The government aims to generate around Rs 21,000 crore by diluting 3.5 per cent stake in the insurance giant. LIC reduced the size of its IPO to 3.5 per cent from the earlier fixed 5 per cent due to prevailing market conditions. LIC’s IPO is going to be the largest ever initial public offering in the country, despite the small size of around Rs 20,557 crore. So far, the amount raised from Paytm’s IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was formed on 1st September 1956 by merging and nationalizing 245 private life insurance companies with an initial capital of Rs 5 crore. Its product portfolio includes 32 individual plans (16 participating and 16 non-participating) 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 premiums or 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 in terms of premiums. In terms of the number of group policies issued.
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