LIC IPO subscribed more than 2.5 times
LIC’s IPO has received good response from investors. Today was the last day of subscription for this IPO, which opened for retail investors on May 4. The issue is subscribed 2.95 times. Bids have been received for 47.77 crore equity shares against 16.2 crore shares.
The portion reserved for policyholders is subscribed 6.10 times, for employees 4.39 times and retail investors’ share 1.99 times. The allotted quota of QIB has received 2.83 times the bids while the NII’s share has been subscribed 2.91 times. The shares will be listed on the stock exchange on May 17. Most of the market analysts had advised to invest in IPO.
Issue strength of ‘Self-reliant India’
Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said the Russia-Ukraine war delayed the IPO of LIC. He called the issue successful. He said that ‘we are hopeful and confident about the listing day.’
Responding to a question about foreign investors not investing as per expectations, Pandey said that ‘LIC IPO shows the strength of a self-reliant India. This issue has shown that there is potential in our capital markets and also our investors… We cannot rely solely on foreign institutional investors. FIIs are also welcome, but the issue is mainly taken up by domestic investors.’
LIC’s gray market premium reduced by half
The gray market premium of the IPO has come down by more than 52.9% to Rs 40. Earlier it was Rs 85. Sentiments against the market are believed to be the reason for this decline. In fact, the US Fed has increased interest rates, due to which the global market is under pressure. Inflation remains a problem for the whole world.
5,630 crore raised from anchor investors
The Government of India wants to raise around Rs 21,000 crore by selling its 3.5% stake in LIC. The price band of the IPO is Rs 902-949. LIC had raised Rs 5,630 crore on May 2 from 123 anchor investors in exchange for 59.3 million shares at Rs 949.
Will everyone get shares?
The issue size of LIC is 21 thousand crores. This is India’s biggest IPO till date. Therefore, the chances of getting shares are very high for most of the people applying for IPO.
