New Delhi: The initial public offering (IPO) of Life Insurance Corporation of India opened for subscription today. The public issue will close on May 9. The insurance behemoth stated that it has garnered around ₹ 5,627 crore from anchor investors ahead of the IPO.
Here’s Your 10-Point Cheat-Sheet To This Big Story:
- The IPO of LIC attracted bids for 4.43 crore equity shares against the IPO size of 16.20 crore shares — subscribed 28 per cent within two hours on the first day of bidding. As of 12:03 pm, retail individual investors’ portion was booked 0.31 times and non-institutional investors’ category was subscribed 0.06 times. Employee reserved and policyholder reserved portions were subscribed 0.47 times and 0.96 times, respectively.
- The price band for LIC IPO is ₹ 902-949 per equity share. LIC policyholders will get a discount of ₹ 60 per equity share, while retail investors and employees will get a discount of ₹ 45 on each share.
- Investors can bid for a minimum of 15 shares (one lot) for ₹ 14,235 at the upper end of issue price.
- LIC’s IPO will take subscriptions even on Saturday (May 7), an unusual move aimed at attracting more investors. The shares would get listed at the stock exchanges on May 17.
- The Centre plans to raise ₹ 21,000 crore by diluting a 3.5 per cent stake in LIC.
- For an IPO, the valuation would be the highest ever in the Indian market. Before this, the highest fundraise was seen in Paytm IPO last year at ₹ 18,300 crore and Coal India in 2010 at ₹ 15,200 crore.
- LIC has approached its policyholders through SMS and other medium to inform them about the share sale.
- LIC has been informing about the IPO for several months through various channels including print and TV advertisements.
- The country’s largest insurer reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition.
- LIC was formed by merging and nationalizing 245 private life insurance companies on September 1, 1956, with an initial capital of ₹ 5 crore.
