LIC’s public offer will remain open for subscription even on weekends to allow people to participate in the state insurer’s mega IPO.
It is probably the first time that the special exemption has been granted for a public offer.
The issuance period also includes bidding on Saturday, May 7, 2022 and Sunday, May 8, 2022, LIC informed exchanges.
Earlier bidding was only allowed on May 7 (Saturday).
To facilitate this, the Reserve Bank of India (RBI) has instructed all bank branches designated by the ASBA to remain open to the public on Sundays to facilitate the processing of applications for LIC’s IPO.
State-owned LIC’s Initial Public Offering (IPO), the largest-ever offering in the country, opened for subscription by private and institutional investors on Wednesday.
The offer closes on May 9 (Monday).
To facilitate bidding for LIC IPO, the government has requested that all bank branches designated to process Application Supported by Blocked Amount (ASBA) applications be allowed to be kept open to the public on May 8, 2022 (Sunday). statement Wednesday.
“The matter has been investigated and it has been decided that banks may keep all their ASBA-designated branches open on May 8, 2022 (Sunday) for the above purpose,” it had said.
In general, ASBA is the mechanism by which investors apply for shares in a public offering.
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.
The share sale will be made through an offer for sale (OFS) of up to 22.13 crore shares. Shares are likely to be listed on May 17.
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 the reduced size of about Rs 20,557 crore, LIC’s IPO becomes 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.
LIC was formed by merging and nationalizing 245 private life insurance companies on September 1, 1956, with a seed capital of Rs 5 crore.
The product portfolio includes 32 individual plans (16 participating and 16 non-participating) and seven individual optional rider benefits. The insurer’s group product portfolio includes 11 group products.
As of December 2021, LIC had a market share of 61.6 percent in terms of premiums or gross premiums written, 61.4 percent in new business premiums, 71.8 percent in the number of individual policies taken out and 88.8 percent in terms of the number of issued group policies.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)