LIC IPO final day subscribed 2.95 times, government expects yield of ₹20,500 crore

According to data available with the exchanges, Life Insurance Corp’s IPO, India’s largest initial share sale, was subscribed 2.95 times on the final day of bidding on Monday.

According to data available with the exchanges, Life Insurance Corp’s (LIC) IPO, India’s largest initial share sale, was subscribed 2.95 times on the final day of bidding on Monday.

On the final day of the offering, investors placed orders for 2.95 times the number of shares available in India’s largest IPO. According to stock exchange data, almost 35 percent of the whole issue is designated for retail investors, and that tranche was sold 1.99 times in Mumbai.

Employees placed purchases for roughly 4.39 times the number of shares available. While LIC insurance policyholders placed orders for more than 6.12 times the number of shares earmarked for them.

Foreign institutional investors mostly avoided India’s largest share sale, finding it too costly in light of currency uncertainties and the global market environment.

While sovereign funds from Norway and Singapore participated in the anchor portion of the IPO. However, the majority of the shares went to local mutual funds.

LIC IPO “A tremendous success”

The portion which was set aside only for policyholders was subscribed nearly 6.11 times. While the reserved portion of qualified institutional buyers (QIBs) was booked 2.83 times. Whereas for non-institutional investors it was 2.91 times.

The IPO is expected to yield about ₹20,500 crore to the exchequer, Finance Ministry officials said.

“I am pleased to inform you that the offer that was started on May 4. Has closed today at 7 pm, and it has met with a tremendous success. With a good response from all categories of investors, including policy holders and retail investors”. Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said at a press conference.

“This long exercise that was undertaken will eventually lead to the listing of the LIC. And not only deepen capital markets. But also facilitate a large number of investors into publicly owned companies. And policy holders have also supported this exercise remarkably”. Mr. Pandey said. “Let us hope that everything goes well on the listing day”.

 

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