LIC IPO: The public issue of Life Insurance Corporation of India (LIC) has been subscribed 1.79 times till May 8, the fifth day of subscription. The offer has received bids for 29.07 crore equity shares against the IPO size of 16.2 crore equity shares.
Policyholders led the bidding as their reserve share was subscribed 5.04 times. This was followed by the quota of employees subscribed 3.79 times and the portion of retail investors 1.59 times.
The government will raise Rs 21,000 crore by issuing 22.13 crore equity shares to the public through an initial public offering. The subscription to the IPO will end on May 9.
Despite being a weekend, the IPO remained open for subscription. Usually business would have been closed due to the weekend on May 7 and 8, but under special arrangements, the purchase of this issue continued on Saturday-Sunday as well.
LIC had informed the stock exchanges about this special arrangement. Perhaps this is the first time that during a public issue, a discount has been given to purchase on Saturday-Sunday also. Earlier it was exempted only for Saturday, but Sunday was also included in it.
Under the special arrangement, the Reserve Bank of India has directed all the designated bank branches to remain open on Sundays also, so that people can apply for the purchase of LIC IPO.
In this regard, a request has been made by the government to keep all the bank branches with ASB service open. An investor can apply for the purchase of shares in a public issue through the ASBA mechanism.
LIC has fixed the price band for the issue at Rs 902-949. Some shares are also reserved for LIC employees and policyholders. 22.13 crore shares of LIC will be sold through the issue. LIC is likely to be listed on the stock market on May 17.