Shares reserved for Qualified Institutional Buyers (QIB), including banks and mutual funds in the LIC’s public offer, were fully subscribed Monday morning, bringing the total subscription for the issue to just over 2 times.
Against the reserved 3,95,31,236, 4,61,62,185 bids were received, representing a bid of 1.17 times, according to data published on the exchanges at 12:12 PM.
For the main highlights: LIC IPO: last day of bidding, issue 2 times oversubscribed so far
The portion of non-institutional investors was subscribed 1.38 times. Private retail investors bid on 11.89 crore shares against 6.9 crore shares reserved for this segment – translating into an oversubscription of 1.72 times.
Of the total, the insured part was subscribed 5.39 times, while that for employees was subscribed 4 times.
The total LIC expenditure was 2.05 subscribed. 33,19,04,280 bids were received against 16,20,78,067 shares offered. LIC has set the price range at Rs 902-949 per share share for the issuance.
The offering includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will be given a discount of Rs 45 per share of shares, while policyholders will be given a discount of Rs 60 per share.
With the tender offer to close later in the day, the government aims to generate about Rs 21,000 crore by diluting its 3.5 percent share of the insurance giant.
LIC has reduced the size of the IPO to 3.5 percent, from 5 percent previously decided due to the prevailing turbulent market conditions. Even after its limited size, LIC’s IPO will become the largest IPO ever 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. PTI DP ANU ANU