LIC IPO Day 2: Issue subscribed 97%; retail quota filled 0.87 times
The initial public offering (IPO) of insurance giant Life Insurance Corporation of India (LIC) has been subscribed 97% on Day 2 of the public issue so far, shows the data available on the National Stock Exchange (NSE). The policyholder and employees' quota has been subscribed 2.89 and 2.05 times, respectively. Retail individual investors' quota has been subscribed 0.87 times, while non-institutional investors and qualified institutional buyers' quota has been subscribed 0.44 times and 0.40 times, respectively.
The insurance major’s IPO was booked 67% on the first day on May 4, while the quota reserved for policyholders and employees was also fully subscribed on the first day itself.
The anchor portion was subscribed 77.41%, and the LIC was able to raise ₹4,355.9 crore by allocating 4.5 crore shares. There were a total of 5.92 crore shares on offer at the allocation price of ₹949 apiece.
On the second day, the QIB quota received bids for 1.5 crore shares against 3.9 crore on offer, while non-institutional investors received bids for 1.3 crore bids against 2.9 crore equity shares on offer. The retail quota received bids for 6.03 crore shares against 6.9 crore on offer, while employees got bids for 32,43,360 equity shares against 15.8 lakh shares on offer. Policyholders' quota received bids for 6.4 crore equity shares against 2.21 crore on offer. In total, 15.6 crore bids have been placed for 16.2 crore equity shares on offer so far.
The 10.7 crore bids have been placed at the cut-off price, while 15.6 crore bids have been placed at the base price of ₹902.
The LIC IPO offer, which carries a price band of ₹902-949 apiece, is set to close on May 9. The share allotment for LIC IPO is expected to be done on May 12, while shares are likely to list on the BSE and the NSE on May 17.
In an otherwise unusual move, the IPO issue will take bids even on Saturday, shows a notification on the NSE. Analysts see this as a move to garner maximum investors in the country's biggest IPO to date.
The government aims to raise around ₹21,000 crore by selling a 3.5% stake in the company. The IPO is completely an offer for sale (OFS), which will see the government selling 22.13 crore (2,21,374,920) shares of ₹10 face value.
The company is offering a discount worth ₹45 per equity share to retail and eligible employee categories and ₹60 per equity share to the policyholder category. Bids can be placed for 15 equity shares and in multiples thereof, with a maximum subscription amount for retail investors, employees and policyholders at ₹2 lakh.