The initial public offer of insurer Life Insurance Corporation of India (LIC), which is the country's biggest public offer, was subscribed 2.95 times on the ultimate day of the offer on Monday, led by policyholders at 6.1 times and employees at 4.4 times. It received a total bid of Rs 45,379 crore against the offering of Rs 15,391 crore.
Meanwhile, DIPAM Secretary Tuhin Kanta Pandey, in a press briefing, said that LIC IPO has met with "tremendous success", adding that the issue received good response from all categories of investors.
He also added that the plan is to have share allotment finalised on 12 May, and should be in Demat accounts by May 17.
Against 16,20,78,067 shares on offer, 47,83,25,760 bids were received, according to the data posted on stock exchanges at 7 pm.
Shares reserved for Qualified Institutional Buyers (QIB), including banks and mutual funds were subscribed fully today, taking the overall subscription of the issue to 2.83 times.
With regard to non-institutional investors (NIIs), a total of 2,96,48,427 bids were received for 8,61,92,835 shares reserved for the category, reflecting a subscription of 2.91 times.
Retail individual investors bid for 13 crore shares as against 6.9 crore shares on offer for the segment, translating into an over-subscription of 1.99 times.
Of the total, the policyholders' portion was subscribed 6.11 times, while that for employees was subscribed 4.39 times.
With the public offer closing earlier today, the government aims to generate about Rs 21,000 crore by diluting a 3.5 percent stake in the insurance behemoth.
LIC reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing choppy market conditions. Even after the reduced size, LIC IPO is going to be the biggest initial public offering ever in the country.
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.
The allotment of shares will be done on May 12, 2022. Lot size of the IPO is 15 shares bidding for which one will have to spend Rs 14,235. A retail individual investor can apply for up to 14 lots or 210 shares by spending Rs 1,99,290. The stock is likely to be listed on BSE and NSE on May 17.
Also read: LIC IPO: Retail portion subscribed fully in first hour of bidding
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