The initial public offering (IPO) of Life Insurance Corporation of India opened for subscription yesterday. The public issue will close on May 9.
The government of India is aiming to garner Rs 21,000 crore at the upper end of the price band by liquidating 3.5 percent of its stake in the insurance behemoth.
Of these, LIC mopped up Rs 5,630 crore from anchor investors on May 2 diluting about 59.3 million shares to 123 investors at Rs 949 apiece.
The IPO Of LIC of India has subscribed 95 percent, receiving bids for 15.40 crore equity shares against offer size of 16.2 crore equity shares.
The portion set aside for policyholders portion has been subscribed 2.85 times, staff 2 times, and retail investors subscribed 86 percent
while QIBs bid for 40 percent shares of their allotted quota and NII lapped up 42 percent of their portion.
The price band for LIC IPO is ₹ 902-949 per equity share. LIC policyholders will get a discount of ₹ 60 per equity share.
The Centre plans to raise ₹ 21,000 crore by diluting a 3.5 per cent stake in LIC.
The country's largest insurer reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing market condition.