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Life Insurance Corp's IPO, India's biggest initial share sale was subscribed 2.95-times on the final day of bidding on Monday, according to data available with the exchanges.

On Monday, the last day of the offering, investors had put in orders for 2.95 times of the shares for sale in India’s biggest IPO. Around 35% of the total issue is reserved for retail investors and that tranche was sold 1.99 times in Mumbai, stock exchange data showed.

Demand from LIC insurance policyholders was for more 6.12 times the amount of shares earmarked for them, while employees submitted orders for about 4.4 times the number of shares available.

Foreign institutional investors largely stayed away from India’s biggest share sale, deeming it too expensive given currency risks and the global market backdrop.

While the anchor portion of the IPO drew in sovereign funds from Norway and Singapore, most of the shares went to domestic mutual funds.

Investors bid for 47.8 crore shares compared with the total 16.2 crore shares on offer. Among LIC's over 250 million policyholders, bids were six times oversubscribed.

Policyholders were offered a discount of 60 per share while employees and retail investors were offered 45.

The price range for the issue has been set between 902 and 949 per share and LIC is likely to be listed on May 17.

In the grey market, LIC shares were trading at a premium of less than 40, down from nearly 100 earlier. A clutch of foreign investors and several domestic mutual fund houses had bid for its anchor book which had closed on May 2.

The 66-year-old company dominates India's insurance sector, with more than 280 million policies. It was the fifth-biggest global insurer in terms of insurance premium collection in 2020, the latest year for which statistics are available.

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