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LIC IPO: Issue subscribed about 3 times; QIB portion fully sold on last day

After the last day of the IPO, the issue has been subscribed 2.95 times, receiving bids for 47.77 crore equity shares against IPO size of 16.2 crore equity shares.

ET Now Digital

Updated May 9, 2022, 20:20 IST

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Insurance behemoth LIC‘s public offer was subscribed 2.95 times and the QIB portion was also fully taken on the final day of bidding on Monday.

After the last day of the IPO, the issue has been subscribed 2.95 times, receiving bids for 47.77 crore equity shares against IPO size of 16.2 crore equity shares.

The portion set aside for policyholders has been subscribed 6.11 times and employees bid 4.39 times of their allotted quota. Retail investors’ portion, which was 35 percent of the total issue, received bids 1.99 times. The reserved portions of qualified institutional buyers (QIBs) and non-institutional investors have also been fully booked.

Addressing a press conference after the final day of LIC IPO, DIPAM Secretary Tuhin Kanta Pandey said, "This issue has shown that our capital markets and our investors also have the capacity...We can't depend only on foreign institutional investors. FIIs are also welcome, but predominantly this issue has been domestically lifted."

Through the public issue, the government planned to sell off a 3.5 percent stake in the state-run insurance behemoth, to raise an amount of Rs 21,000 crore.

The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60 per share.

With the public offer closing today, the government aims to generate about Rs 21,000 crore by diluting 3.5 per cent 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.

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