LIC IPO subscribed 1.8x a day ahead of close, big push from policyholders

 The policyholder quota was subscribed over 5 times, employee portion 3.8 times and retail individual investor quota 1.6 times.

Life Insurance Corporation’s (LIC’s) initial public offering (IPO) was subscribed 1.79 times on Sunday, a day before its close. The LIC policyholder quota was subscribed over 5 times, employee portion 3.8 times and retail individual investor quota 1.6 times. The institutional investor and wealthy investor have seen subscriptions of 67 per cent and 1.24 times, respectively.

Over the weekend, the IPO saw 1.2 million investors submit their bids worth over Rs 6,000 crore, said investment bankers. The total applications received by the LIC IPO have reached 5.9 million, highest-ever for a public offering in the domestic market. LIC was the first IPO to remain open on weekends. The government has set the price band for the IPO between Rs 902 to Rs 949 per share, with an additional discount of Rs 45 and Rs 60, for retail and policyholders, respectively. At the upper-end of the price-band, LIC will have a market value of Rs 6 trillion, making it India’s fifth most valuable firm.

LIC IPO fully subscribed on day 2 of opening; offer closes on May 9

 Sees participation from 3.6 mn individual investors; policyholders lead

State-owned Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO), the largest ever in the domestic market, was fully subscribed on Thursday — the second day of the issue. The IPO, which will remain open till Monday, has so far generated bids worth Rs 20,744 crore, including the Rs 5,628 crore raised from anchor investors. Small investors have poured in over Rs 12,000 crore in the IPO. Sources said the issue had seen participation from 3.6 million individual investors from across India and expectations were that the total applications figure would hit a record 10 million.

At the end of day 2, the policyholders’ quota had seen over three times more demand than the shares on offer, while the employees’ portion was subscribed 2.22 times. The retail investor quota, the largest of the lot, was subscribed 93 per cent. The qualified institutional buyer (QIB) and high networth individual (HNI) categories were, on the other hand, subscribed 40 per cent and 47 per cent, respectively. Most bids in the QIB and HNI categories are expected to come on the last day of the issue….LIC IPO

LIC board to meet Tuesday for IPO dates, issue likely opens May 4

 The government will sell its 3.5 per cent equity in LIC for Rs 21,000 crore, valuing India’s largest insurer at Rs 6 trillion

The board of Life Insurance Corporation of India (LIC) will meet Tuesday to consider the launch dates for the company’s initial public offering (IPO). The meeting will also consider the discount to be offered to policyholders, employees and retail shareholders.

The board will consider the proposal of the issue opening date of May 4 and closing date of May 9, an official said. The reservation for the insurer’s employees would also be taken up by the insurer’s board. Once approved by the board, the issue dates, reservation and discounts would be announced on Wednesday, and mentioned in the red herring prospectus (RHP).

LIC’s board, on Saturday, approved reducing the issue size of the LIC IPO Date to 3.5 per cent from 5 per cent proposed earlier. The centre would now dilute 3.5 per cent of its shares in LIC for Rs 21,000 crore subject to regulatory approval, valuing LIC at Rs 6 trillion The government filed LIC’s draft papers with the Securities and Exchange Board of India (Sebi) in February, aiming to raise around Rs 65,000 crore at a market value of Rs 12 trillion as it dilutes its 5 per cent stake. Even at Rs 21,000 crore, the IPO will be the biggest-ever and exceed the record of Rs 18,300 crore by Paytm….