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LIC’s public offer, the country’s biggest-ever IPO, saw the policyholders’ portion being oversubscribed on the first day itself on Wednesday, though overall subscription stood at just 0.66 per cent.
The government aims to generate about Rs 21,000 crore by selling 3.5 per cent stake in the insurance behemoth. The LIC initial public offering, open for retail and institutional investors, is set to close on May 9.
The issue period also includes bidding on Saturday, May 7. The portion reserved for policyholders was subscribed 1.9 times, while that for employees was fully subscribed during the first day itself, as per data available on the BSE.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders.
The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60.
However, demand from qualified institutional buyers and non-institutional investors was muted. The non-institutional investors’ portion was subscribed 0.26 per cent while QIBs’ portion was slightly higher at 0.33 per cent.
