1 min read.Updated: 10 May 2022, 08:56 AM ISTLivemint
LIC IPO was booked with nearly 3 times subscription at the end of the six-day bidding period on Monday
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Life Insurance Corporation of India's (LIC) mega public offering closed with nearly 3 times subscription at the end of the six-day bidding period which ended on Monday, predominately lapped up by domestic retail and institutional buyers but foreign investor participation remained muted.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey termed the response to the LIC IPO as 'tremendous', adding that the issue saw good participation from all categories of investors.
The government, which raised ₹20,500 crore from sale of 3.5% of its stake in the country's largest insurer, however shrugged of the muted participation of foreign investors, saying the issue was an example of 'Atmanirbhar Bharat' (self-reliant India) and the issue saw interest from a cross section of investors.
As per market observers, LIC shares are available at a premium (GMP) of ₹16 in the grey market today. The share allotment is expected to happen on May 12 and the shares of the company will be listing on stock exchanges BSE and NSE on Tuesday, May 17, 2022.
The finalization of basis of share allotment of LIC IPO is expected to take place this week on Thursday, May 12, 2022 and if allotted, then the credit of shares to demat account of bidders will be done on May 16. The registrar for this IPO is KFin Technologies Limited, therefore the allotment application can be checked on its website here or on the BSE website here.
LIC reduced its IPO size from 5% to 3.5% due to the prevailing choppy market conditions, which was substantially lower than the earlier projection of about ₹60,000 crore.
The anchor investor portion of the insurance behemoth's initial share sale was oversubscribed last week, raising around ₹5,620 crore from anchor investors, ahead of its issue. The insurance behemoth had fixed the price band at ₹902-949 per equity share for the issue.