LIC IPO Highlights: LIC would hit the stock exchanges on May 17
New Delhi:
The much-awaited initial public offer (IPO) of Life Insurance Corporation of India (LIC) was subscribed 67 per cent on first day of its subscription on May 4, 2022. The public issue was subscribed 0.60 times in the retail category, the policy holders’ share was subscribed 1.99 times, employees’ portion was subscribed 1.17 times while it was subscribed 0.33 times in qualified institutional buyers (QIBs) and 0.27 times in the NII category respectively.
It will open for subscription again tomorrow morning at 10 am on May 5, 2022.
Here are the highlights of the first day’s subscription of LIC’s IPO
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With this the first day of the mega LIC IPO’s subscription came to a close. It will open for subscription again tomorrow morning on May 5.
As of 6:48 pm, the IPO of LIC was subscribed 65 per cent in over eight hours on the first day of bidding. Retail individual investors’ portion was booked 0.58 times and non-institutional investors’ category was subscribed 0.26 times. Employee reserved and policyholder reserved portions were fully subscribed, 1.13 times and 1.92 times, respectively.
As of 4:48 pm, the IPO of LIC attracted bids for 10.05 crore equity shares against the IPO size of 16.20 crore shares — subscribed 62 per cent within seven hours on the first day of bidding. Retail individual investors’ portion was booked 0.55 times and non-institutional investors’ category was subscribed 0.33 times. Employee reserved and policyholder reserved portions were fully subscribed, 1.02 times and 1.82 times, respectively.
As of 4:03 pm, the IPO of LIC attracted bids for 9.48 crore equity shares against the IPO size of 16.20 crore shares — subscribed 58 per cent within six hours on the first day of bidding.
As of 3 pm, the IPO of LIC attracted bids for 7.54 crore equity shares against the IPO size of 16.20 crore shares — subscribed 47 per cent within five hours on the first day of bidding. Retail individual investors’ portion was booked 0.49 times and non-institutional investors’ category was subscribed 0.11 times. Employee reserved and policyholder reserved portions were subscribed 0.83 times and 1.61 times, respectively.
As of 1:57 pm, the initial share sale attracted bids for 6.62 crore equity shares against the IPO size of 16.20 crore shares — subscribed 41 per cent within four hours on the first day of bidding. The policyholder portion was subscribed fully (1.40 times) while the reserved employees’ portion was subscribed 0.72 times. Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) portion has received a tepid response so far.
As of 12:57 pm, the IPO of LIC attracted bids for 5.53 crore equity shares against the IPO size of 16.20 crore shares — subscribed 34 per cent within three hours on the first day of bidding. Retail individual investors’ portion was booked 0.37 times and non-institutional investors’ category was subscribed 0.08 times. Employee reserved and policyholder reserved portions were subscribed 0.59 times and 1.19 times, respectively.
LIC IPO: As o 12:03 pm, the initial share sale attracted bids for 4.43 crore equity shares against the IPO size of 16.20 crore shares — subscribed 28 per cent within two hours on the first day of bidding.
The IPO of LIC attracted bids for 2 crore equity shares against the IPO size of 16.20 crore shares — subscribed 12 per cent within an hour on the first day. As of 11:03 am, retail individual investors’ portion was booked 0.18 times and non-institutional investors’ category was subscribed 0.04 times. Employee reserved and policyholder reserved portions were subscribed 0.28 times and 0.26 times, respectively.
LIC’s IPO will take subscriptions even on Saturday (May 7), an unusual move aimed at attracting more investors.
LIC’s embedded value was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors. The embedded value is a measure of the consolidated shareholder’s value in an insurance company.
LIC’s product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.
Norwegian wealth fund Norges Bank Investment Management and the Government of Singapore are among the subscribers to the anchor book, an exchange filing showed. Alongside other global funds, domestic mutual fund houses such as HDFC mutual fund, SBI, ICICI and Kotak have also come in as anchor investors.
The Centre plans to raise Rs 21,000 crore by diluting a 3.5 per cent stake in LIC. For an IPO, the valuation would be the highest ever in the Indian market. Before this, the highest fundraise was seen in Paytm IPO last year at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.
Investors can bid for a minimum of 15 shares (one lot) for Rs 14,235 at the upper end of issue price.
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