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LIC IPO: Insurer raises Rs 5,627 cr from anchor investors with 71% of allotment to domestic mutual funds

LIC IPO: Insurer raises Rs 5,627 cr from anchor investors with 71% of allotment to domestic mutual funds

By CNBCTV18.com May 3, 2022 1:55:34 PM IST (Updated)

LIC IPO: The insurance company has allotted nearly 59.3 million shares to 123 anchor investors at Rs 949 apiece.

Insurance major Life Insurance Corporation's (LIC) raised Rs 5,627 crore from anchor investors on Monday, ahead of the launch of its initial public offering (IPO), the largest public offer in the country. 71 percent of the total allotment was made to domestic mutual funds (MFs), shows a disclosure by the company.

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The insurance company has allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece.
“Out of the total allocation of 59,296,853 equity shares to the anchor investors, 42,173,610 equity shares (71 percent of the total allocation) were allotted to 15 domestic mutual funds through 99 schemes,” the company said.
Among the domestic MFs that subscribed to the insurer's shares are Aditya Birla Sun Life MF, Axis MF, SBI Mutual Fund, and HDFC MF.
SBI Equity Hybrid Fund has been allocated 5,468,910 shares worth Rs 518 crore, while ICICI Prudential Value Discovery Fund has been allocated 2,318,220 shares worth Rs 219 crore. SBI Blue Chip Fund has been allocated 2,002,220 shares worth Rs 190 crore.
Among foreign investors, while the Government of Singapore has been allocated 1,598,220 shares for a total amount of Rs 151 crore, BNP Investments has been allocated 4,741,830 shares worth nearly Rs 450 crore.
The LIC IPO, which was to be launched in March this year, was postponed after Russia's invasion of Ukraine that sent shockwaves through markets leading to reduced enthusiasm around public issues.
The LIC IPO is now set to open on May 4 and will close on May 9. The government has set a price band of Rs 902 to 949 per equity share, with a discount of Rs 60 for policyholders.
The IPO size has been trimmed to raise Rs 21,000 crore, from the earlier Rs 35,000 crore, with the government reducing its stake dilution to 3.5 percent from the earlier 5 percent.
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