LIC IPO Day 1: 67 percent subscribed issue, policyholders in enthusiasm

LIC issue subscribed 67% on the first day

LIC’s IPO will close on May 9 and bids for it can be placed on Saturday i.e. on May 7. The government aims to raise Rs 21,000 crore by selling 3.5 per cent of its shares.

Country’s largest IPO (IPO) has got a good response on the first day of the issue. LIC ,LICBids have been received for more than two-thirds of the shares put on offer on the first day of the IPO. This response of the day before getting the large size of the issue and the long duration for the application can be considered good. On the first day, there was a lot of enthusiasm among the policy holders of LIC and their quota has been double subscribed. The bid for more shares than the shares reserved for the employees has been received on the very first day i.e. this quota has also been fully subscribed. With this, the retail quota has also been filled more than half. From the first day indications, it is estimated that the IPO can easily be fully subscribed on the second day. Whereas the Reserve Bank of India (RBI) said on Wednesday that bank branches with ASBA (Application Supported Through Blocked Amount in Account) facility for initial public issue of LIC will remain open on Sundays as well.

How was the performance of the first day of the issue?

According to BSE data, as of 7 pm, bids have been received for 10,86,91,770 shares against 16,20,78,067 shares placed in the offer, which is 67 percent of the offer. Out of the 5 categories fixed for shares, the quota of 2 categories of employees and policy holders has been fully subscribed. Policyholder’s quota has been subscribed 1.99 times and employees’ quota 1.17 times. At the same time, the share of retail investors is 60 percent, the share of NII is 27 percent and the share of QIBs is 33 percent subscribed.

Highlights of the issue

The issue is open on Wednesday and investors can submit their applications till May 9. The price band of the issue has been kept between Rs 902 to 949. Based on the upper levels of the price band, the valuation of LIC is Rs 6 lakh crore. LIC employees and policy holders are being given a discount in the IPO. Retail investors will get a discount of Rs 45 and policy holders Rs 60. The allotment of stocks in the IPO will take place on May 12, while the refund process will start from May 13. From May 16, the shares will start coming in the demat account of the investors. The stock will be listed on May 17. At the upper levels of the price band, investors can bid for at least 15 stocks after which the bids will be in multiples of 15. The issue has a quota of 50 percent for QIBs, 35 percent for retail investors and 15 percent for NIBs.

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Bank branches will also open on May 8

RBI said in a statement that the government has requested to open all the branches of ASBA on Sunday i.e. May 8 to process LIC’s IPO applications. The central bank said, after reviewing this request, it has been decided to open the bank branches with the facility of Esba on Sunday (May 8) also. Normally investors apply for public issue through Esba. LIC’s IPO will close on May 9 and bids for this can also be placed on May 7. The government aims to raise Rs 21,000 crore by selling 3.5 per cent of its shares. LIC’s IPO will close on May 9.