LIC IPO: Policyholders’ portion oversubscribed; total subscription at 67% on day 1

LIC’s public supply, the nation’s biggest-ever IPO, noticed the policyholders’ portion being oversubscribed on the primary day itself on Wednesday, although total subscription stood at 67 per cent.

The authorities goals to generate about Rs 21,000 crore by promoting 3.5 per cent stake within the insurance coverage behemoth.

LIC’s preliminary public providing (IPO), open for retail and institutional traders, is ready to shut on May 9. The difficulty interval additionally contains bidding on Saturday, May 7.

The portion reserved for policyholders was subscribed 1.9 instances, whereas that for workers was totally subscribed in the course of the first day itself, as per knowledge accessible on the BSE.

LIC has fastened the value band at Rs 902-949 per fairness share for the problem. The supply features a reservation for eligible staff and policyholders. The retail traders and eligible staff will get a reduction of Rs 45 per fairness share, whereas policyholders will get a reduction of Rs 60.

However, demand from certified institutional patrons (QIBs) and non-institutional traders was muted. The non-institutional traders’ portion was subscribed 27 per cent whereas QIBs’ portion was barely larger at 33 per cent.

Retail Individual Investor class picked up practically 60 per cent of the 6.9 crore shares put aside for this phase.

The supply acquired bids for 10,86,45,360 shares towards the provided 16,20,78,067 fairness shares (excluding shares provided to anchor traders), as per knowledge accessible on the bourses at 7 pm.

The share sale is thru an offer-for-sale (OFS) of as much as 22.13 crore fairness shares. The shares are prone to be listed on May 17.

LIC has already mopped up a bit over Rs 5,627 crore from anchor traders led primarily by home establishments. Anchor Investors (AIs) portion (5,92,96,853 fairness shares) was subscribed at Rs 949 per fairness share.

LIC lowered its IPO measurement to three.5 per cent from 5 per cent determined earlier as a result of prevailing uneven market situations. Even after the lowered measurement of about Rs 20,557 crore, LIC IPO goes to be the most important preliminary public providing ever within the nation.

So far, the quantity mobilised from the IPO of Paytm in 2021 was the biggest ever at Rs 18,300 crore, adopted by Coal India (2010) at practically Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.

LIC was fashioned by merging and nationalising 245 non-public life insurance coverage firms on September 1, 1956, with an preliminary capital of Rs 5 crore.

Its product portfolio contains 32 particular person merchandise (16 taking part and 16 non-participating merchandise) and 7 particular person optionally available rider advantages. The insurer’s group product portfolio contains 11 group merchandise.

As of December 2021, LIC had a market share of 61.6 per cent by way of premiums or GWP, 61.4 per cent by way of new enterprise premium, 71.8 per cent by way of the variety of particular person insurance policies issued, and 88.8 per cent by way of the variety of group insurance policies issued.

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