The initial public offering (IPO) of Life Insurance Corporation of India opened for subscription on Wednesday. As o 12:03 pm, the initial share sale attracted bids for 4.43 crore equity shares against the IPO size of 16.20 crore shares — subscribed 28 per cent within two hours on the first day of bidding.
Retail individual investors’ portion was booked 0.31 times and non-institutional investors’ category was subscribed 0.06 times. Employee reserved and policyholder reserved portions were subscribed 0.47 times and 0.96 times, respectively.
After a reservation for employees and policyholders, the remaining shares will be allocated in a ratio of 50 per cent to qualified institutional buyers, 35 per cent to retail investors and 15 per cent for non-institutional investors.
The public issue, with a price band of Rs 902-949 a share, will conclude on May 9.
The IPO will take subscriptions even on Saturday (May 7), an unusual move aimed at attracting more investors.
LIC policyholders will get a discount of Rs 60 per equity share, while retail investors and employees will get a discount of Rs 45 on each share.
Investors can bid for a minimum of 15 shares (one lot) for Rs 14,235 at the upper end of issue price.
The government plans to raise Rs 21,000 crore by diluting a 3.5 per cent stake in LIC.
The stock would get listed at the exchanges (BSE and NSE) on May 17.
LIC dominates India’s insurance sector, with more than 280 million policies.