LIC IPO’s retail portion fully subscribed on day 3; offer closes on Monday


LIC’s public offer, the country’s biggest-ever IPO, witnessed full subscription of the retail portion on day three on Friday.

The overall issue was subscribed 1.38 times, according to data posted on the stock exchanges at 7 pm.

Against 16,20,78,067 shares on offer, 22,36,98,915 bids were received.

However, the Qualified Institutional Buyer (QIB) and the Non-Institutional Investor (NII) portions are yet to be fully subscribed.

Subscription for the non-institutional investors’ segment stood at 76%, while that for the QIB portion was lower at 56%.

Retail individual investors bid for 8.53 crore shares as against 6.9 crore shares set aside for this segment — translating into oversubscription of 1.23 times.

Of the total, the policyholders’ portion was subscribed a little more than four times, while that for employees was subscribed three times.

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, while policyholders will get a discount of ₹60 per share.

LIC’s public offer will remain open for subscription over the weekend to enable people to participate in the mega IPO of the state-owned insurer.

The initial public offering (IPO) will close on May 9.

The government aims to generate about ₹21,000 crore by diluting 3.5% stake in the insurance behemoth.

LIC reduced its IPO size to 3.5% from 5% decided earlier, due to the prevailing choppy market conditions. Even after the reduced size of about ₹20,557 crore, the LIC IPO is set to be the biggest initial public offering ever in the country.

So far, the amount mobilised from the IPO of Paytm in 2021 was the largest at ₹18,300 crore, followed by Coal India (2010) at nearly ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.

LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of ₹5 crore.

Its product portfolio comprises 32 individual plans (16 participating and 16 non-participating) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.

As of December 2021, LIC had a market share of 61.6% in terms of premiums or gross written premium, 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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