LIC’s IPO, India’s largest at ₹21k crore, subscribed 3 times – Times of India


MUMBAI: The Rs 21,000-crore initial public offering (IPO) for life insurance behemoth LIC obtained an enormous response from home establishments and was oversubscribed practically thrice by the point it closed on Monday. LIC’s policyholders, its staff, retail traders, excessive web value traders (HNIs) and home monetary establishments contributed handsomely to the supply. However, international funds – regardless of preliminary speak about robust demand from this influential group of traders – turned out to be principally fence sitters, based on the ultimate subscription figures.
Within the post-issue press convention, Tuhin Kanta Pandey, secretary of the federal government’s divestment arm Dipam that was liable for taking LIC public, described the providing as an ‘Atmanirbhar’ challenge because it was the home traders, particularly the Indian monetary establishments, that noticed it by way of. The problem had opened on Could 4 and, not like different gives prior to now, traders had been capable of bid within the IPO on all of the intervening days – together with Saturday and Sunday – as the federal government had made particular preparations to smoothen the standard last-day rush seen in most high-profile gives.
In response to knowledge on the BSE, the portion reserved for LIC’s policyholders was subscribed 6.1 instances, for eligible staff it was 4.4 instances, for retail traders practically 2 instances, for HNIs 2.9 instances and for the institutional patrons 2.8 instances. The IPO obtained bids for practically 48 crore shares in opposition to 16.2 crore on supply. A day earlier than the IPO opened for all traders, the federal government had positioned LIC shares value about Rs 5,600 crore with a clutch of home and international traders. This was the primary divestment supply within the historical past of the Indian capital market that had anchor traders.
By way of this IPO, the largest in India, the federal government divested 3.5% of its fairness within the life insurance coverage main. In response to the pricing coverage of the supply, LIC’s policyholders will get a Rs 60-per-share low cost on the ultimate worth, whereas retail traders get Rs 45.
Apparently, because the mega IPO drew to a detailed on Monday, the gray market premium (GMP) within the unofficial marketplace for shares evaporated. At the beginning of the IPO on Could 4, the GMP was at Rs 60-65 per share, which on the second day hit a excessive of Rs 80. By Monday afternoon, nonetheless, the GMP was at a low of Rs 5 and, by night, it had vanished. GMP for any IPO is an indicator of the premium the shares may command at itemizing. LIC is predicted to be listed on Could 17.


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