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LIC IPO subscribed 166% on Day 4 as policyholders bid nearly 5 times the reserved portion

LIC IPO subscribed 166% on Day 4 as policyholders bid nearly 5 times the reserved portion

By CNBCTV18.com  IST (Updated)

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LIC IPO: Employees and LIC policyholders showed massive interest in the state-run insurance behemoth's IPO, which aims to raise up to Rs 21,000 crore through the issue. Overall, the issue was booked 1.66 times on Saturday.

Life Insurance Corporation of India's (LIC) initial public offering (IPO) was subscribed 1.66 times by close on Saturday, the fourth day of the bidding process. Investors across categories bid more than 26.83 crore shares against the issue size of 16.2 crore shares by 4:45 pm, according to exchange data.
Employees and LIC policyholders showed massive interest in the state-run insurance behemoth's IPO, which aims to raise up to Rs 21,000 crore through the issue.
Policyholders booked 4.67 times more than the portion of 2.2 crore shares reserved for them. The insurance company’s employees also seemed enthusiastic having subscribed 3.54 times the number of shares set aside for them.
Retail investors bid 1.46 times the 6.9 crore shares reserved for them.
Investor categorySubscription (by end of day)
Qualified Institutional Buyers (QIB)0.67 times
Non-institutional investors (NII)1.03 times
Retail investors1.46 times
Employees3.54 times
Policyholders4.67 times
While employees and retail investors get a discount of Rs 45 each, LIC policyholders are eligible to get a discount of Rs 60 per equity share. (Check how to avail discount here)
However, this is applicable to only eligible policyholders, who linked their PAN to their LIC policy by February 28.
Before the mega IPO launch on Wednesday, LIC raised Rs 5,627 crore by allocating 5.9 crore shares to anchor investors.
LIC shares are available for bidding in a price band of Rs 902-949 apiece in multiples of 15 under the IPO. Bidding also remained open across investor categories on Saturday, May 7. The LIC stock is likely to be listed on exchanges BSE and NSE on May 17.
The LIC IPO was oversubscribed on Friday, fully subscribed on Thursday — the second day of bidding — and 63 percent on the previous day.
The subscription window for India's largest-ever public offer, through which the government plans to offload 3.5 percent of its stake in the company, will end on May 9.