LIC Public Offer will also be open for subscription on weekends so that people can participate in the mega IPO of the state-owned insurer.
This is perhaps the first time a special discount has been given to a public offering.
The issue period also includes bidding on Saturday, May 7, 2022 and Sunday, May 8, 2022, LIC informed the exchanges.
Earlier, bidding was allowed only on May 7 (Saturday).
To facilitate this, the Reserve Bank of India (RBI) directed all ASBA-specified bank branches to remain open to the public on Sunday to facilitate the processing of applications for LIC’s initial public offering.
The country’s biggest ever initial public offering (IPO) of LIC opened for subscription by retail and institutional investors on Wednesday.
This offer will close on 9th May (Monday).
Government has requested to facilitate bidding for LIC IPO that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday) Yes, RBI had said in one. statement on Wednesday.
“The matter has been examined and it has been decided that banks may open all their ASBA designated branches on May 8, 2022 (Sunday) for the above purpose.”
Generally, ASBA is the mechanism through which investors apply for shares in a public issue.
LIC has fixed a price band of Rs 902-949 per equity share for the issue. The offer includes reservation for eligible employees and policyholders. Retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60.
The sale of shares is done through an offer-for-sale (OFS) of 22.13 crore equity shares. The shares are likely to be listed on May 17.
LIC reduced the size of its IPO to 3.5 per cent from the earlier fixed 5 per cent due to prevailing market conditions. Despite the reduced size of about Rs 20,557 crore, LIC’s IPO is going to be the largest ever initial public offering in the country.
So far, the amount raised from Paytm’s IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was formed on 1st September 1956 by merging and nationalizing 245 private life insurance companies with an initial capital of Rs 5 crore.
Its product portfolio includes 32 individual plans (16 participating and 16 non-participating) and seven individual optional rider benefits. The group product portfolio of the insurer comprises 11 products of the group.
As of December 2021, LIC had a market share of 61.6 percent in terms of premiums or gross written premiums, 61.4 percent in terms of new business premiums, 71.8 percent in terms of number of individual policies issued and 88.8 percent in terms of premiums. In terms of the number of group policies issued.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)