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LIC’s IPO closed on May 9 and its shares were allotted to the bidders on May 12. The government has offered more than 22.13 crore shares i.e. 3.5 percent stake in LIC through IPO.
The country’s largest insurance company Life Insurance Corporation (life insurance corporation) will list its shares in the stock exchanges on Tuesday. For this initial public issue of Rs 20,557 crore to the government, domestic investors (domestic investors, Got a good response from Government shares of LIC (LIC Shares) has been fixed at Rs 949 per share. However, LIC’s policyholders and retail investors will get shares at Rs 889 and Rs 904 per share, respectively. The shares will be listed on BSE and NSE on May 17.
LIC’s IPO closed on May 9 and its shares were allotted to the bidders on May 12. The government has offered more than 22.13 crore shares i.e. 3.5 percent stake in LIC through IPO. For this, the price range was kept at Rs 902-949 per share. LIC’s IPO was subscribed almost three times. In this, domestic investors participated enthusiastically, while the reaction of foreign investors was cold. This is the biggest IPO in the history of the country.
Government decided to sell its 3.5 percent stake in LIC
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 of 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.
Supreme Court refuses to stay share allotment under LIC’s IPO
A few days ago, the Supreme Court had refused to grant interim relief on petitions filed by some policy holders of Life Insurance Corporation of India and stay the share allotment under the initial public issue of LIC. A bench of Justices DY Chandrachud, Surya Kant and PS Narasimha said the court should refrain from granting any interim relief in cases of commercial investments and IPOs. The bench said that we do not want to give any kind of interim relief.
However, the court has issued notices to the Center and LIC on these petitions and sought their response within eight weeks. LIC’s IPO was open for retail and other investors on May 4 and its shares are to be allotted on Thursday. The bench said that in one of these petitions the interim order of the Bombay High Court has been challenged. Disposing of this, the court said that the writ petition filed in the High Court will be transferred to the Apex Court. The top court linked these applications with the petition pending before a constitution bench which deals with the issue of passing the Finance Act, 2021 as a money bill.