The Life Insurance Corporation (LIC) mega public issuance opened today with an overwhelming response, with more than 60 percent bids, led by policyholders and employees.
Entries close on May 9, including an extra day on Saturday, with the allocation announcement likely on May 12 and stock listing on May 17.
While the government had postponed the initial public offering (IPO) from March and reduced the size of the sale of its stake to 3.5 percent through an offer for sale (OFS) of up to 22.13 crore shares, from 5 percent earlier, the trend so far shows solid demand from anchor investors at the high end of the price band.
Indeed, the IPO was subscribed by 62 percent of the bid within seven hours on the first day of bidding and counting. Out of the 16.20 crore shares offered, 10.05 crore shares were won on Day 1.
The share of private retail investors was booked 0.55 times and the non-institutional investor category was booked 0.33 times. Reserved employees and policyholder quota portions were fully subscribed 1.02 times and 1.82 times, respectively.
The IPO of the insurance giant can be bid at the price range of Rs 902-949 per share with the bidding lot starting at 15 and a maximum of 240 shares.
Even after the reduced size of about Rs 20,557 crore, LIC’s IPO will be the largest ever public offering in the country.
So far, the amount mobilized from Paytm’s IPO in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
For more details on the LIC IPO: click here for the top marks.