LIC IPO Subscription: LIC IPO Fully Booked, Focus Shifts To Listing On May 17: Key Highlights

LIC IPO concludes successfully, focus on listing on May 17

LIC’s Mega IPO: India’s biggest ever Initial Public Offering (IPO) by Life Insurance Corp (LIC) fully booked under all categories and focused on listing on stock exchanges on 17th May.

Here’s your 10-point guide to the story:

  1. Despite the turmoil in the financial markets, the insurance giant’s IPO received an overwhelming response, with the issue almost three times oversubscribed, led by LIC’s bid of over 250 million policyholders to offer more than six times the shares.

  2. All categories of the public offering were oversubscribed. The portion set aside for policyholders was booked 6.11 times, by employees 4.39 times, by retail investors 1.99 times, by non-institutional investors 2.91 times and by Qualified Institutional Buyers (QIBs).

  3. Exchange data showed that as of 07:00 pm on Monday, the IPO was booked 2.95 times as investors bid for 47.76 crore shares against 16.20 crore shares on offer. The government will raise a record Rs 21,000 crore by selling 3.5 per cent stake in the country’s top insurance company, which is a third of its original target.

  4. Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said, “The IPO has seen an overwhelming response from all investors including policyholders and others like retail and QIBs. LIC IPO is expected to deepen the capital market. ” , while addressing a conference at the end of the six-day membership window on Monday.

  5. “This shows that the capacity of the Indian capital market has increased substantially and also shows that we can run our own capital market without relying on foreign investors… It is a fact that the issue is primarily has been taken up by domestic institutions,” he said. said.

  6. When asked about the low participation of Foreign Institutional Investors (FIIs), Mr. Pandey said that LIC IPO is an example of self-reliant India. Investors from distant places have invested. Mainly this issue has been raised at the domestic level. Demands from foreign investors, in silence, to bid on the mega IPO collapsed at the last minute.

  7. The Secretary DIPAM said that the allotment of shares to the investors would be done on May 12 and refunds would be processed soon thereafter. Mr. Pandey had earlier said that LIC’s IPO will be listed on the stock exchanges on May 17, subject to regulatory approvals. Decisions will be taken in the interest of the highest-ranking policyholders. On the other hand, the interests of the shareholders will also be balanced, he said.

  8. Asked about the expected reaction in the market on the day of listing given the recent slowdown, Mr. Pandey said, “Let’s hope everything goes well on the day of listing.”

  9. Prior to the listing, Reuters reported that LIC’s shares were trading at a premium of less than Rs 40 in the gray market, compared to around Rs 100 earlier.

  10. A discount of Rs 60 per share was offered to policyholders, while Rs 45 was offered to employees and retail investors. The price range for the issue was fixed between Rs 902 and Rs 949 per share.

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