LIC IPO fully subscribed on day 2 of opening; offer closes on May 9

The record Rs 20,557 crore initial public offering (IPO) by India’s Life Insurance Corp (LIC) was fully subscribed on Thursday, helped by attractive pricing for the state-owned insurer’s listing later this month.

Investors bid for 162.3 million shares by 6pm IST on the second day of subscription for India’s largest public issue, compared with 162.1 million shares on offer, exchange data showed

Demand from LIC insurance policyholders was for more two-and-a-half times the amount of shares earmarked for them, while employees submitted orders for about two times the number of shares available. The portion for Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) portion has received a tepid response, PTI reported.

Non-institutional investors’ segment was subscribed 46 per cent, while QIBs’ portion was slightly lower at 40 per cent. Retail individual investors picked up nearly 91 per cent of the 6.9 crore shares set aside for this segment.

The initial public offering (IPO) will close on May 9. The government aims to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth. LIC has fixed the price band at Rs 902-949 per equity share for the issue.

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