LIC IPO subscription status Day 5: Issue booked 1.79 times till 07:00 PM, policyholder quota booked over 5x

LIC IPO subscription status Day 5: The initial public offer (IPO) of Life Insurance Corporation of India (LIC) was subscribed by 1.79 times on the fifth day of the issue on Sunday, May 8, 2022, till 07:00 PM, according to data posted on stock exchanges.

The country's biggest-ever IPO received 29,08,27,860 bids against 16,20,78,067 shares on offer. The Qualified Institutional Buyer (QIB) quota was booked 0.67 times and Non-Institutional Investor (NII) portions received bids by 1.24 times on the fifth day.

Retail individual investors bid for 10.99 crore shares as against 6.91 crore shares set aside for this segment -- translating into an oversubscription of 1.59 times.

Of the total, the policyholders' portion was subscribed over five times, while that for employees was subscribed almost four times.

LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60 per share.

LIC's public offer will remain open for the subscription even on weekend to enable people to participate in the mega IPO of the state-owned insurer. The IPO will close on May 9.

The government aims to generate about Rs 21,000 crore by diluting a 3.5 per cent stake in the insurance behemoth.

LIC reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing choppy market conditions. Even after the reduced size of about Rs 20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country.

So far, the amount mobilised from the IPO of Paytm 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.

As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or gross written premium, 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued.

With PTI Inputs