Life Insurance Corporation’s (LIC) initial public offering (IPO) was fully subscribed on the second day of the issuance with bids for 166 million equity shares coming in against 162 million on offer. Demand from policyholders and employees of the state-run insurer was strong. The policyholder quota was subscribed 3.11 times, while the employee quota was subscribed 2.2 times. The portion set aside for retail investors was subscribed 93%.
“The LIC IPO has been fully subscribed on the second day of its opening. There are still four more days to go. So, we look forward for a healthy over-subscription,” Alok Pande, joint secretary, department of investment and public asset management (DIPAM), told FE.
Interest from qualified institutional buyers and non-institutional investors remained somewhat muted on Thursday, as the portion set aside for these investors was subscribed 40% and 47%, respectively. Experts, however, said that demand from high net-worth individuals is typically seen on the last day of the issue.
With a view to facilitate the process, the government has requested all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications to remain open for the public on Sunday, May 8.
With the issue being subscribed fully, the government has managed to successfully raise Rs 21,000 crore by selling a 3.5% stake, offering shares at Rs 902-949. Ahead of the IPO, the insurer raised Rs 5,627 crore from 123 anchor investors at the upper price band of Rs 949. The insurance behemoth is expected to list on the exchanges on May 17 at a valuation of Rs 6 trillion. The issue will close for subscription on Monday, May 9.