Lic Ipo subscribed 158% on day 4 while policyholders offered more than 4 times the reserved part

The initial public offering (IPO) of Life Insurance Corporation of India (LIC) was taken up 1.5 times on Saturday afternoon, the fourth day of the bidding process. Investors across all classes offered 25.60 crores of shares against the issue size of 16.2 crores of shares at 4:45 p.m., according to data from the exchange.

LIC employees and policyholders have shown massive interest in the IPO of the state-run insurance giant, which aims to raise up to Rs 21,000 crore through the issuance.

Policyholders have reserved 9.8 crores of shares, four times more than the share of 2.2 crores of shares reserved for them. The employees of the insurance company were also enthusiastic, having subscribed 3.4 times the number of shares reserved for them.

Retail investors bid for 9.5 crores of shares, or 1.38 times the 6.9 crores of shares reserved for them.

Investor category Subscription (until 4:45 p.m.)
Qualified Institutional Buyers (QIB) 0.67 times
Non-Institutional Investors (NII) 1.03 times
Retail investors 1.3 times
Employees 3.4 times
insured 4.4 times
While employees and retail investors get a rebate of Rs 45 each, LIC policyholders are eligible to get a rebate of Rs 60 per share. (Check how to redeem the discount here)

However, this only applies to eligible policyholders, who linked their PAN to their LIC policy before February 28.

Ahead of Wednesday’s mega IPO launch, LIC raised Rs 5,627 crore by allocating 5.9 crore shares to core investors.
LIC shares are available at auction in a price range of Rs 902-949 each in multiples of 15 as part of the IPO. Bidding also remained open across all investor categories on Saturday, May 7. The LIC share is expected to be listed on the BSE and NSE exchanges on May 17.

LIC’s IPO was oversubscribed on Friday, fully subscribed on Thursday – the second day of the auction – and 63% the day before.

The bidding window for India’s biggest-ever public offering, through which the government plans to offload 3.5% of its stake in the company, will close on May 9.

(Edited by : Kanishka Sarkar)


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