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