The mega initial public offering (IPO) of Life Insurance Corporation (LIC) was subscribed 1.38 times (138 per cent) on Friday with investors putting in bids for 22.36 crore shares as against the public offer of 16.20 crore shares.
LIC policyholders’ quota was oversubscribed 4.01 times (401 per cent) and the employee reserved portion attracted 306 per cent subscription. The retail investors portion was subscribed 123 per cent, according to data revealed by the stock exchanges.
Retail investors bid for 8.53 crore shares as against their quota of 6.91 crore shares. While 2.21 crore shares were allotted for policyholders, there were bids for 8.88 crore shares. Employees bid for 48.33 lakh shares as against their quota of 18.51 lakh shares.
Non-institutional investors have subscribed 76 per cent of their portion while qualified institutional buyers (QIBs) bought 56 per cent of the allotted quota of 3.95 crore shares. Majority of the bids in the QIB quota were put by banks, domestic institutions, insurance companies and mutual funds. QIBs normally put in their bids on the last day of the IPO. Foreign investors put in bids for 8.40 lakh shares.
The issue will close on May 9.
The corporation has priced the IPO in the range of Rs 902-949 per share. It has offered a discount of Rs 60 for policyholders and Rs 45 for retail investors and employees. The size of the IPO was cut from Rs 65,000 crore to Rs 21,000 crore as the Russian invasion of Ukraine and sustained selling by foreign investors sent the stock markets into a tailspin.
LIC mobilised Rs 5,627 crore from anchor investors on Monday. Domestic mutual funds invested Rs 4,002.27 crore, accounting for 71.12 per cent of the total anchor book portion of the IPO. SBI Mutual Fund invested Rs 1,006.89 crore, becoming the largest investor in the anchor book quota.
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