LIC IPO sees 100% subscription on Day 2; issue to remain open on weekend: Top updates

Updated on May 05, 2022 08:12 PM IST
The IPO will close on May 9. The government aims to generate about 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth.
All India United Trade Union Centre activists shout slogans during their protest over the LIC's IPO in Kolkata, (PTI)
All India United Trade Union Centre activists shout slogans during their protest over the LIC's IPO in Kolkata, (PTI)
By | Written by Aniruddha Dhar

The Life Insurance Corporation (LIC) public offer, the country's biggest-ever IPO, was subscribed 100 per cent on Thursday by investors on the second day of bidding.

The public offer will remain open for a subscription even on the weekend to enable people to participate in the mega IPO of the state-owned insurer.

Latest updates on Day 2 of LIC IPO:

> Against 16,20,78,067 shares on offer, 16,25,35,125 bids were received, making the public issue fully subscribed, as per data on stock exchanges as of 6.24 pm.

> Of the total, the policyholders' portion was subscribed a little over three times, while that for employees was subscribed 2.14 times.

> Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) portion has received a tepid response so far. Non-institutional investors' segment was subscribed 46 per cent, while QIBs' portion was slightly lower at 40 per cent.

Also Read | LIC IPO is credit positive for India's life insurance sector: Moody's

> The IPO will close on May 9. The government aims to generate about 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth.

> LIC has fixed the price band at 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders.

> The retail investors and eligible employees will get a discount of 45 per equity share, and policyholders will get a discount of 60 per equity share.

> The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17.

> The issue period also includes bidding on Saturday, May 7, and Sunday, May 8, LIC informed exchanges. Earlier bidding was allowed on May 7 (Saturday) only.

> To facilitate this, the Reserve Bank of India (RBI) directed all ASBA-designated bank branches to remain open for the public on Sunday to facilitate the processing of applications for LIC's initial public offering.

(With inputs from PTI, Reuters)

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