In the country's largest ever Initial Public Offering (IPO), Life Insurance Corporation of India (LIC) opened for subscription for retail institutional investors on Wednesday, 4 May. As of 5 pm, the IPO was subscribed 63 percent, BloombergQuint reported.
The portion reserved for the policyholders was fully subscribed within a few hours of the opening, with reports suggesting that it was subscribed 1.84 times. Meanwhile, employees subscribed 1.04 percent as of 5 pm.
The state-run insurance company is offering a 3.5 percent stake, with a price band of 902-949 per share in a bid to generate Rs 21,000 crore.
The LIC IPO will close on 9 May and the company will be listed on the stock exchange on 17 May.
In light of the market condition, LIC had slashed the stake by 1.5 percent. As per the LIC draft of February, the government was offering 31.62 crore equity shares or a 5 percent stake in the IPO.
However, despite the reduced offering size, the issue is the biggest in India, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey confirmed on 27 April.
Shares are also reserved for retail investors, eligible employees and policyholders, with discounts up to Rs 60 per equity share.
Propelled by domestic institutions, anchor investors have invested over Rs. 560 crore in the firm already, at a price of Rs 949 per equity share.
Till now, the IPO of Paytm in 2021 had garnered the largest amount in the country with Rs 18,300 crore.
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