LIC IPO: The IPO of Life Insurance Corporation of India (LIC) has received a bumper response from investors. The issue got 2.95 times subscription on the last date of bidding i.e. Monday 9th May. In this way the government was able to raise about Rs 21,000 crore. 16,20,78,067 shares were offered under LIC’s IPO. According to the data available on the stock exchanges till 7 pm, 47,83,25,760 bids were made by investors for these shares.
Country’s largest IPO got bumper response
Shares in the Qualified Institutional Bidders (QIB) category were subscribed 2.83 times. 11.20 crore bids were made for the 3.95 crore shares reserved for this quota. On the other hand, 2,96,48,427 shares were offered under the Non-Institutional Investors (NII) category for which 8,61,93,060 bids were made. In this way NII quota has got 2.91 times subscription. Similarly, retail investors bid for 13.77 crore shares against an offer of 6.9 crore shares. LIC’s issue has been subscribed 1.99 times in this category.
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Policyholder-employees took advantage
The reverse quota for LIC policyholders has got subscriptions more than six times while the LIC employees category has received 4.4 times the bids. Let us tell you that LIC’s IPO was open for investment on May 4. The price band of the issue was fixed at Rs 902-949 per share. In this, apart from keeping some shares reserved for eligible policyholders and employees, they were also given exemption.
Government is selling 3.5 percent stake
The government has decided to sell its 3.5 per cent stake in LIC through this issue. The government was expected to get around Rs 20,557 crore from the sale of this stake. With this amount, LIC’s issue has proved to be the biggest IPO in the country so far. Before this, Paytm’s IPO, which came in 2021, was worth Rs 18,300 crore. Prior to that, in the year 2010, the IPO of Coal India was about Rs 15,500 crore.
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Company History
LIC was formed on September 1, 1956 by nationalizing 245 private life insurance companies. At that time a capital of Rs 5 crore was infused in it. With the passage of time, LIC has become the largest company in the country. It controlled 61.6 per cent of the insurance premium business in December 2021.