LIC raises Rs 5,627 crore from anchor investors led by domestic institutions – Times of India

NEW DELHI: Insurance coverage behemoth LIC on Tuesday stated it has garnered somewhat over Rs 5,627 crore from anchor buyers led primarily by home establishments forward of its mega preliminary public providing (IPO). Anchor Buyers’ (AIs) portion (5,92,96,853 fairness shares) was subscribed at Rs 949 per fairness share, the insurer stated in an early morning submitting to exchanges.
Out of the allocation of about 5.9 crore shares to AIs, 4.2 crore shares (71.12 per cent) have been allotted to fifteen home mutual funds via 99 schemes, the submitting stated.
Apart from, funding was made by some home insurance coverage corporations and pension funds. A few of the distinguished names on this class included ICICI Prudential Life Insurance coverage, SBI Life Insurance coverage, Kotak Mahindra Life Insurance coverage, PNB Metlife Insurance coverage, SBI Pension Fund and UTI Retirement Options Pension Fund Scheme.
International participation included Authorities of Singapore, Financial Authority of Singapore, Authorities Pension Fund World and BNP Funding LLP.
As per the prospectus, out of the 22.13 crore shares provided on the market, 5.93 crore shares have been reserved for anchor buyers.
The federal government by diluting 3.5 per cent stake in LIC would elevate Rs 21,000 crore, the most important ever IPO within the Indian market. The earlier such excessive fundraising was seen within the IPO of Paytm in 2021 at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.
The worth band for LIC IPO is Rs 902-949 per fairness share.
Policyholders will get a reduction of Rs 60 per fairness share, whereas retail buyers and staff will get a reduction of Rs 45 on every share.
Of the whole shares on supply, over 9.88 crore shares are reserved for certified institutional patrons and over 2.96 crore shares for non-institutional patrons. As much as 15,81,249 shares and a couple of,21,37,492 shares are reserved for workers and policyholders.
LIC would get listed and begin buying and selling on the inventory exchanges on Could 17.
LIC’s embedded worth, which is a measure of the consolidated shareholders’ worth in an insurance coverage firm, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by worldwide actuarial agency Milliman Advisors.
Primarily based on investor suggestions, the market worth of government-owned LIC has been pegged at 1.1 occasions its embedded worth or Rs 6 lakh crore.
LIC was fashioned by merging and nationalizing as many as 245 personal life insurance coverage corporations on September 1, 1956, with an preliminary capital of Rs 5 crore.
Its product portfolio contains 32 particular person merchandise (16 collaborating merchandise and 16 non-participating merchandise) and 7 particular person elective rider advantages. The insurer’s group product portfolio contains 11 group merchandise.
As of December 2021, LIC had a market share of 61.6 per cent when it comes to premiums or GWP, 61.4 per cent when it comes to new enterprise premium, 71.8 per cent when it comes to the variety of particular person insurance policies issued, and 88.8 per cent when it comes to the variety of group insurance policies issued.

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