09 May , 2022 By : Kanchan Joshi
Life Insurance Corporation's (LIC) IPO, the country's biggest initial public offer, was subscribed 1.79 times on the fifth day of the issue on Sunday as it remained open for subscription even on weekend to enable people to participate in the mega share sale. The issue will close today.
As of 10:20 am on the last day of the bidding, LIC IPO has been subscribed 1.93 times with retail investors' category booked 1.63x. Of the total, the policyholders' portion was subscribed 5.14 times, while that for employees was subscribed 3.84 times.
Qualified Institutional Buyers (QIBs) and Non Institutional Investors (NIIs) bid 1.07 times and 1.29 times respectively so far, BSE data showed.
As per market observers, LIC shares are available at a premium (GMP) of Rs36 in the grey market today. The share allotment is expected to happen on May 12 and the shares of the company will be listing on stock exchanges BSE and NSE on Tuesday, May 17, 2022.
LIC has fixed the price band at Rs902-949 per equity share for the issue. The government aims to generate about Rs21,000 crore by diluting 3.5% stake. LIC reduced its IPO size from 5% due to the prevailing choppy market conditions. This is substantially lower than the earlier projection of about Rs60,000 crore. Even after the reduced size of about Rs20,557 crore, LIC IPO is set to be the biggest public offering ever in the country.
The anchor investor portion of the insurance behemoth's initial share sale was oversubscribed last week, raising around Rs5,620 crore from anchor investors, ahead of its issue.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956. As of December 2021, LIC had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of new business premium, 71.8% in terms of the number of individual policies issued, and 88.8% in terms of the number of group policies issued.
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