LIC IPO Fully Subscribed On Day 2: 10 Developments

As of 6:27 pm, investors bid for 16.26 crore shares, compared with the total 16.20 crore shares on offer, with the portions reserved for employees and policyholders already fully subscribed, exchange data showed. (Here’s How To Check LIC IPO Allotment Status)

The portion set aside for policyholders was subscribed 3.02 times, employees by 2.14 times, retail investors by 0.91 times, non-institutional investors by 0.46 times and qualified institutional buyers by 0.40 times.

The price range for the issue has been set between Rs 902 and Rs 949 per share.

The subscription is offering a discount to employees and retail investors of Rs 45 per share. LIC policyholders will be offered a discount of Rs 60 per share.

The government plans to raise Rs 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 Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.

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 has been informing about the IPO for several months through various channels, including print and TV advertisements. It has also approached its policyholders through SMS and other medium to inform them about the share sale.

The insurer had garnered around Rs 5,627 crore from anchor investors ahead of the IPO.

LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.