The Life Insurance Corporations of India (LIC) shares sale through initial public offering (IPO) witnessed good response from investors on day 1 of the issue as it was subscribed 64 per cent. LIC shares in the ongoing IPO were in heavy demand from its employees and policyholders as the portions reserved for them were over subscirbed on the first day itself.
Portion set aside for retail individual investors was subscribed 57 per cent with quota reserved for policyholders getting subscribed 1.89 times and the quota set aside for employees was booked 1.1 times, data from the National Stock Exchange showed.
Portions set aside for Non Institutional Investors and Qualified Institutional Buyers (QIBs) also got subscribed 26 per cent and 33 per cent each respectively.
A total of 10.4 crore bids were received for at the end of day 1 of IPO for 16.2 crore shares on the offer.
The insurance behemoth on Tuesday said it has garnered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions ahead of its mega initial public offering (IPO).
The much-awaited LIC's IPO opened for subscription today. The government of India is selling 3.5 per cent stake in the country's largest IPO to raise Rs 21,000 crore. The IPO has been priced in the band of Rs 902-949 per share.
The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, and policyholders will get a discount of Rs 60 per equity share.
So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.