LIC IPO Is A Bumper Hit! Subscribed 67% On Day 1, Employees, Policyholders Quota Fully Subscribed

The country’s largest life insurer, the state-owned Life Insurance Company (LIC) launched its initial public offer on May 4, a highly-awaited development, which saw positive response from market participants on its first day.

By the end of its first day of public issue, the IPO was subscribed 67%. By 12 pm on Wednesday, the country’s biggest IPO was subscribed 27% and in the first hour only,  the issue received 12% bids.

Here’s everything you need to know about the blockbuster IPO launched on May 4.

LIC IPO: Everything That Happened on Day 1 of Launch

LIC IPO is the country’s largest public issue, beating Paytm’s IPO in 2021, sized at Rs 18,300 crore, and the govt led Coal India’s IPO in 2010 at Rs 15,200 crore.

On the first day of its bidding process on Wednesday, LIC IPO was subscribed 67%, with the retail individual investors booking their portions 0.6 times and non-institutional investors booking their category 0.27 times.

Also, the reserved portions of employees were fully subscribed 1.17 times, and policyholders’ portions were also fully subscribed at 1.99 times on the first day.

Furthemore, in an unusual move on Wednesday, the National Stock Exchange (NSE) will take subscriptions for the LIC on Saturday also, i.e. May 7. This is done to attract more investors for the issue. 

The country’s biggest insurer’s shares will get listed at the Indian bourses on May 17.

LIC IPO: Everything You Need to Know

The LIC IPO was launched on May 4 and will remain open for subscription till May 9.

The price band for the IPO is set from Rs 902-949 apiece of face value Rs 10/share. The insurer had garnered around Rs 5,627 crore from anchor investors ahead of the IPO.

The Indian government holds 100% stake in the insurer and through the IPO, it will sell 3.5% of its stake held. The Centre is willing to generate about Rs 21,000 crore at the upper end of the price band.

The entire IPO would be an offer-for-sale or OFS, wherein the Govt will sell 221,374,920 equity shares of the company.

LIC has offered a discount of Rs 60 to its eligible policyholders, and a Rs 45 discount will be given to employees and retail investors.

Investors can bid for a minimum lot size of 15 shares and thereafter, in multiples of 15.