There was a tremendous selling environment in the Indian stock market on Wednesday. Meanwhile, the IPO of India’s largest insurance company LIC has also opened for retail investors. The IPO was subscribed 67% on the first day. According to stock exchange data, out of the total issue, the policyholders’ share was subscribed 1.9 times, while the employees’ share was fully filled.
There is no specific response so far for the Qualified Institutional Buyers (QIBs) and Non-Institutional Buyers segment. On the first day, 33 per cent of QIBs and 26 per cent of non-institutional buyers were subscribed.
The government expects to raise Rs 21,000 crore from LIC’s IPO. She is going to sell her 3.5 percent stake in LIC. The price range for the IPO has been fixed at Rs 902 to 949 per share. Let us tell you that LIC’s IPO will close on May 9.
Retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders of LIC will get a discount of Rs 60 per equity share.
This IPO is in the form of Offer for Sale (OFS) and through this the government wants to sell 22.13 crore shares. The company’s shares are likely to be listed on May 17.
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LIC said that it has raised Rs 5,627 crore from anchor investors, in which there is a majority of domestic companies. 5.92 crore shares were reserved for anchor investors at the rate of Rs 949 per equity share.