LIC IPO: If you have missed out on bidding in the country’s largest ever Life Insurance Corporation of India (LIC) Initial Public Offering (LIC IPO), you now have a chance on Saturday and Sunday as well. Yes.. You can bid for LIC IPO on Saturday and Sunday. In fact, the Reserve Bank of India (RBI) has directed all banks to keep the window open to allow applications for LIC IPO on Saturdays and Sundays as well. RBI said that bank branches with ASBA facility will remain open for LIC IPO on Sunday as well.
How was the response on the third day
The issue got fully subscribed retail share on the third day on Friday. The overall issue was subscribed 1.38 times. As per the data available on BSE, the portion comprising of Qualified Institutional Buyers (QIBs) and Non-Institutional Buyers is yet to be fully subscribed. On the third day, the QIB segment was subscribed 56 per cent and the non-institutional buyers category 76 per cent. On the other hand, the company’s IPO for 6.9 crore shares reserved for retail investors received 1.23 times subscription i.e. 8.53 crore bids on the third day. The policyholders’ share was subscribed a little over four times, while the employees’ share got over three times the subscription. The price band for LIC IPO has been fixed at ₹902-949 per equity share.
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What’s going on in the gray market
According to market experts, LIC shares are available today at a premium (GMP) of ₹ 42 in the gray market. The allotment of shares is expected on May 12 and the shares of the company will be listed on the stock exchanges BSE and NSE on Tuesday, May 17, 2022. This issue will close on Monday, 9th May 2022.
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Government is selling 3.5% stake
Explain that the government is selling 3.5% stake in LIC and will raise around Rs 21,000 crore from it. LIC had reduced its IPO size by 5% due to prevailing market conditions. However, even after reducing the size of LIC IPO, it is the largest ever IPO in the country.