LIC IPO: Subscribed 2.95 times on final day; policyholders portion booked 6.12 times, employees 4.40 times

The initial public offering (IPO) of Life Insurance Corporation of India (LIC) has received a good response from the investors across various categories as the offer has closed with 2.95 times subscription. The issue received bids for 47,83,67,010 equity shares against 16,20,78,067 equity shares on offer.

The Qualified Institutional Buyers (QIBs) portion was subscribed 2.83 times while Non-Institutional Investors (NII) and Retail Individual Investors (RIIs) portions were subscribed 2.91 times and 1.99 times. The portion set aside for policyholders has been subscribed 6.12 times, employees bid 4.40 times the allotted quota.

Briefing media in New Delhi, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said, LIC IPO has met with tremendous success from all categories of investors. He said, this will provide an opportunity to the investor to be the part of the largest life insurer of the country.

The IPO of LIC was opened for public subscription on May 4, 2022. This IPO was the biggest public offering in the country. The allotment of shares will take place on May 12, 2022, and the IPO will list for trading on May 17, 2022. LIC had fixed the price band of Rs 902 to 949 per Equity Share for its maiden public offer.

The LIC had offered a discount of Rs 45 per share to Retail and Eligible Employee Category and Rs 60 per share to Policyholder Category. With this IPO, the government is looking to divest its 3.5 per cent stake in the insurer by selling 22.13 crore shares. The Government aims to raise around Rs 21,000 crore through IPO.

The proceeds from the stake sale after deducting expenses and taxes will be paid to the government—the selling shareholder. LIC expects that the proposed listing of its equity shares will enhance its visibility and brand image.

LIC is recognized as the third-strongest and 10th most-valuable global insurance brand as per the Insurance 100 2021 report released by Brand Finance. LIC has a diverse portfolio of insurance and investment products to cater to the needs of individuals. The company is well-placed owing to its distribution network of over 13 lakh agents, several partners and alternate channels, its trusted LIC brand value, and 65 years of lineage. Moreover, LIC is backed by its strong financial track record and experienced management team.