LIC (Life Insurance Corporation of India) IPO closed for subscription after a large six-day window with buyers bidding for two.95 occasions the shares on provide. The Rs 21,000 crore public difficulty, the biggest ever seen by home inventory markets, opened for subscription final week and garnered heavy response with bids coming in for roughly 47.83 crore fairness shares. Through the LIC IPO, the federal government has diluted its stake within the insurance coverage sector behemoth by 3.5% and raised a big chunk of the divestment goal for the present fiscal 12 months.
Qualified Institutional Buyers (QIB) have been the final class to totally subscribe to their portion. At the top of the day, QIB portion was subscribed 2.83 occasions with bids coming in for 11.20 crore fairness shares towards the three.95 crore on provide. Non-institutional investor (NII) portion was bid for two.91 occasions. Data confirmed buyers had bid for greater than 8.61 crore fairness shares whereas solely 2.96 crore have been reserved for the class.
Retail buyers subscribed to the difficulty in giant numbers. Over the six-day subscription interval, retail quota of LIC IPO was subscribed 1.99 occasions. Investors positioned bids for 13.77 crore fairness shares towards the 6.91 crore that have been on provide for retail buyers. Employees of LIC subscribed to their reserved shares 4.40 occasions with bids coming in for greater than 69 shares of LIC. 15.81 lakh shares have been reserved for the class. Policyholders of LIC had oversubscribed their portion on the very first day of the difficulty and the ultimate subscription determine stood at 6.12 occasions with bids coming in for 13.53 crore fairness shares. 2.21 crore shares have been reserved for policyholders.
LIC shares have been supplied to buyers via the IPO in a set worth band of Rs 902-949 per fairness share. The provide included reductions for numerous investor classes. Retail buyers and eligible staff bought shares at a reduction of Rs 45 per fairness share, whereas policyholders got a reduction of Rs 60 per share.
With its IPO, LIC has turn out to be the biggest ever on Dalal Street, taking up from Paytm’s public difficulty that got here final 12 months. In 2021 Paytm had raised Rs 18,300 crore via the IPO, different giant points on Dalal Street embody Coal India at practically Rs 15,500 crore in 2020, and Reliance Power at Rs 11,700 crore which got here in 2008.