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LIC IPO: Policyholders’ portion oversubscribed; general subscription at 66% on day 1

LIC IPO: Policyholders’ portion oversubscribed; general subscription at 66% on day 1

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NEW DELHI: LIC’s public provide, the nation’s biggest-ever IPO, noticed the policyholders’ portion being oversubscribed on the primary day itself on Wednesday, although general subscription stood at simply 66 per cent.
The federal government goals to generate about Rs 21,000 crore by promoting 3.5 per cent stake within the insurance coverage behemoth.
The LIC preliminary public providing (IPO), open for retail and institutional buyers, is ready to shut on Could 9. The problem interval additionally consists of bidding on Saturday, Could 7.
The portion reserved for policyholders was subscribed 1.9 instances, whereas that for workers was absolutely subscribed in the course of the first day itself, as per information obtainable on the BSE.
LIC has mounted the value band at Rs 902-949 per fairness share for the problem. The provide features a reservation for eligible workers and policyholders.
The retail buyers and eligible workers will get a reduction of Rs 45 per fairness share, whereas policyholders will get a reduction of Rs 60.
Nevertheless, demand from certified institutional consumers (QIBs) and non-institutional buyers was muted. The non-institutional buyers’ portion was subscribed 0.26 per cent whereas QIBs’ portion was barely greater at 0.33 per cent.
Retail particular person investor class picked up almost 50 per cent of the 6.9 crore shares put aside for this section.
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 Could 17.
LIC has mopped up a bit over Rs 5,627 crore from anchor buyers led primarily by home establishments. Anchor Buyers (AIs) portion (5,92,96,853 fairness shares) was subscribed at Rs 949 per fairness share.
LIC diminished its IPO measurement to three.5 per cent from 5 per cent determined earlier because of the prevailing uneven market circumstances. Even after the diminished measurement of about Rs 20,557 crore, LIC IPO goes to be the largest preliminary public providing ever within the nation.
To date, 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 almost Rs 15,500 crore and Reliance Energy (2008) at Rs 11,700 crore.
LIC was shaped 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 collaborating and 16 non-participating merchandise) and 7 particular person non-obligatory 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 when it comes to premiums or GWP, 61.4 per cent when it comes to new enterprise premium, 71.8 per cent when it comes to the variety of particular person insurance policies issued, and 88.8 per cent when it comes to the variety of group insurance policies issued.

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