The first public offering (IPO) of Life Insurance Corporation (LIC) was subscribed 1.79 times on the fifth day of subscription on Sunday, May 8, 2022. The government plans to raise Rs 21,000 crore through the public issuance and the insurance giant has a major awareness blitzkrieg, encouraging policyholders, employees and the general public to wholeheartedly endorse it.
Let’s take a look at all the developments related to the country’s largest public offer in 10 points.
The public offering was subscribed 1.59 times in the retail category, 1.24 times in the non-institutional investor category, while employee shares were subscribed no less than 3.79 times.
The share of policyholders was massively subscribed 5.03 times, the share of qualified institutional buyers (QIBs) was only 0.67 times.
The IPO has also been kept open for subscription today, despite it being a Sunday, as the government seeks to maximize investor opportunities to book the issuance.
However, the All India Bank Officers’ Confederation (AIBOC) has objected to opening all Application Supported by Blocked Amount (ASBA) designated branches on Sunday.
It had said in a statement that the Reserve Bank of India (RBI) decision serves no purpose as most applications are submitted digitally.
The AIBOC said in a letter to the RBI Governor: “With the closing date (of the LIC IPO) on May 9, we do not understand the reason for the RBI notification for opening the branches on Sunday (May 8) .”
Most branches have been designated ASBA with rapid digitization, according to the association.
The Government of India will sell 3.5 percent or 22.13 crore shares through an LIC for sale. As of May 2, more than Rs 5,600 crore has already been raised from the anchor book.
The IPO was opened for subscription to retail and other investors on May 4 and will close on May 9.
LIC chairman MR Kumar had previously said the company is well capitalized.