ASBA bank branches to remain open this Sunday for LIC IPO. Check list here
Data given on NSE showed that the IPO received total bids of 16,24,09,785 equity shares against the offered size of 16,20,78,067 equity shares - subscribing by more than 100%. A strong appetite was seen from policyholders followed by employees and retail investors.
The Reserve Bank of India (RBI) has asked Application Supported by Blocked Amount (ASBA) designated bank branches to remain open this Sunday for the mega IPO of LIC.
LIC IPO which is nearly in size of ₹21,000 crore making it the biggest ever public offer in the market, is available for subscription since May 4. The IPO was going to be allowed for bidding on Saturday (May 7) and then later resume on May 9. However, now the IPO will be allowed for bidding on May 8 as well.
In a statement, RBI said, "the Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday)."
That means, the LIC IPO will remain open for subscription on Saturday and Sunday as well.
RBI said, "The matter has been examined and it has been decided that banks may keep all their ASBA designated branches to open on May 8, 2022 (Sunday) for the above purpose."
LIC IPO opened on May 4 and is available till May 9. The IPO fully subscribed on Thursday, which is the second day of the issue.
Data given on NSE today showed that the IPO received total bids of 16,24,09,785 equity shares against the offered size of 16,20,78,067 equity shares - subscribing by more than 100%. A strong appetite was seen from policyholders followed by employees and retail investors.
The portion reserved for policyholders oversubscribed by 3.02 times, while the portion kept for employees oversubscribed by 2.14 times. Retail investors portion subscribed by 91% against the allocated shares, on the other hand, qualified institutional buyers (QIB) and non-institutional investors (NII) subscribed by 40% and 46% against their reserved size.
With more days allowed to bid in the IPO, the performance of QIBs and NIIs will be keenly watched.
As per Sebi's circular, ASBA is an application by an investor containing an authorization to Self Certified Syndicate Bank (SCSB) to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized.
Meanwhile, SCSB is a bank that is recognised as the bank capable to provide ASBA services to its customers.
Check out of the list of ASBA designated banks as per SEBI's latest update as of April 27, 2022.
About 60 branches are providing ASBA services currently, as per the Sebi website.
These are - Ahmedabad Mercantile Co-Op Bank, AU Small Finance Bank, Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Barclays Plc, BNP Paribas, Canara Bank, Central Bank of India, CITI Bank, City Union Bank, Credit Suisse, DBS Bank, Deutsche Bank, Deutsche Bank AG, Dhanlaxmi Bank, Equitas Small Finance Bank, Federal Bank, GP Parsik Sahakari Bank, HDFC Bank, HSBC, ICICI Bank, and IDBI Bank.
Furthermore, banks like IDFC First Bank, Indian Bank, Indian Overseas Bank, Indusind Bank, J. P. Morgan Chase, Bank, N.A., Jammu & Kashmir Bank, Janata Sahakari Bank, Karnataka Bank, Karur Vasya Bank, Kotak Mahindra Bank, Mehsana Urban Co-operative Bank, Nutan Nagarik Sahakari Bank, Punjab National Bank, Rajkot Nagarik Sahakari Bank, RBL Bank, South Indian Bank, Standard Chartered Bank, Syndicate Bank, and SVC Co-operative Bank among others.
Others are - Tamilnad Mercantile Bank, Kalupur Commercial Co-operative Bank, Saraswat Co-operative Bank, Surat Peoples Co-op Bank, TJSB Sahakari Bank, UCO Bank, Union Bank of India, and Yes Bank.
LIC IPO comprises an offer for sale up to ₹20,557 crore where the government will offload a 3.5% stake. The IPO has a price band of ₹902 to ₹949 per equity share. LIC offers ₹60 per equity share discount to LIC policyholders, and ₹45 per equity share discount offered to retail investors.
LIC is expected to be listed on May 17. LIC will compete against other private players namely SBI Life Insurance, HDFC Life Insurance, and ICICI Prudential Life Insurance on stock markets.
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