LIC IPO Receives Record Applications From Retail Investors

Employees, policyholders, and retail investors continued to show great interest in Life Insurance Corporation’s (LIC) initial public offering (IPO), with the issue being subscribed 1.78 times by the fifth day of bidding. The country’s largest public offering drew 29.07 crore bids for 16.02 crore shares on sale.

On the third day, the amount intended for retail investors was completely subscribed, and by the conclusion of the fifth day, it had been 1.59 times oversubscribed. Retail individual investors submitted 10.9 crore bids for the offering, compared to 6.9 crore shares set aside for them.

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It may be remembered that Reliance Power’s initial share sale in 2008 received 4.8 million applications. LIC broke this record fourteen years later when it received over 6 million applications from retail equity investors.

The subscription period for the LIC IPO began on May 4 and will end on May 9. Saturday and Sunday were also open for bidding on the problem.

The IPO is divided into three parts: qualified institutional buyers (QIB) receive 50% of the quota, non-institutional investors (NII) receive 35%, and retail individual investors receive 15%. (RII). Policyholders were also eligible for a 10% discount.

The IPO’s price range was set at Rs 902 to Rs 949 per equity share. Retail investors and eligible workers receive a discount of Rs 45 per equity share, while LIC policyholders receive a discount of Rs 60 per equity share.

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The issuance is essentially an offer for sale of around 22.13 crore equity shares owned by the Indian government, which controls 100% of the insurance behemoth but will only sell 3.5 percent. The government intends to collect Rs 21,000 crore by selling a 3.5 percent share in the LIC.

Because of the volatile market, LIC cut the IPO size from 5% to 3.5 percent. The LIC IPO remains the country’s largest initial public offering, despite its smaller size of around Rs 20,557 crore. By assigning 5.92 lakh shares at Rs 949 per share, LIC raised Rs 5,627 crore from anchor investors.

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