The Life Insurance Corporation of India (LIC), initial public offering (IPO), the biggest in the history of the Indian capital market, went ahead strongly on its second day with subscription levels by today reaching 93 percent overall, receiving bids for 15.01 crore equity shares against offer size of 16.2 crore equity shares.
This was a great show, coming off a somewhat tentative start as the IPO started yesterday. The policyholders’ discount offer was also a huge hit, with that portion being subscribed 2.83 times. The portion set aside for the staff of the company has been subscribed 1.97 times, and retail investors subscribed 85 percent, while QIBs bid for 35 percent shares of their allotted quota and NII lapped up 39 percent of their portion.
The process will stay open on Sunday also. The IPO process ends on May 9 (Monday).
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 a piece.
The Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open to the public on May 8, 2022 (Sunday). The matter has been examined and it has been decided that banks may keep all their ASBA designated branches open on May 8, 2022 (Sunday) for the above purpose.