Life Insurance Corporation of India (LIC), opened its initial public offering (IPO) on May 4, the largest in the Indian capital market’s history. The offer will be accessible for subscription on May 4 (Wednesday), and the deadline to subscribe is May 9 (Monday).
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Subscription status for the LIC IPO:
Day 6 LIC IPO Subscription Update as of 7:00 p.m. (NSE)
Qualified Institutional Buyers (QIBs) subscribed 1.70 times
Non-Institutional Investors subscribed 1.39 times
Retail Individual Investors (RIIs) subscribed 1.14 times
Employees subscribed 2.45 times
Policyholders subscribed 3.34 times
Total subscribed 1.64 times
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The price range for the offer is Rs 902-949 per equity share with a face value of Rs 10 each. However, LIC would provide a discount of Rs 60 to qualified policyholders, while retail investors and employees will receive a discount of Rs 45.
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By selling 3.5% of its stake in the insurance behemoth, the government of India seeks to raise Rs 21,000 crore at the upper end of the price range. The IPO is fully an offer-for-sale of 221,374,920 equity shares, with the government receiving the whole proceeds. Up to 1,581,249 units of the shares on the block are allocated for employees, and up to 22,137,492 units are held for policyholders.
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From the overall offer size, qualified institutional purchasers will get 50% of the net offer, retail investors will receive 35%, and non-institutional investors would receive the remaining 15%. After the offer, the Government of India’s shareholding in the corporation would be reduced to 96.5% from its current ownership of 100%.
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Investors can bid for a minimum lot size of 15 shares and multiples of that amount. For Rs 1,99,290, a retail investor can apply for up to 14 lots or 210 shares. The maximum bid amount has been set at Rs 2 lakh for retail investors, LIC employees, and LIC policyholders.