The LIC IPO raised 67 percent on day one, with policyholders subscribing 1.99 times: 10 Facts

The subscription period for the Life Insurance Corporation of India’s first public offering (IPO) began today. On May 9, the public issue will come to an end. Prior to the IPO, the insurance behemoth announced that it had raised $5,627 crore from anchor investors.

On Wednesday, when bidding for the LIC IPO concluded for the first day, it was subscribed 67 percent. (See also: LIC IPO: Overwhelming Demand Day 1 With Over 60% Bids and Counting)

The component for retail individual investors was booked 0.60 times, while the category for non-institutional investors was subscribed 0.27 times. The reserved sections for employees and policyholders were both fully subscribed, 1.17 times and 1.99 times, respectively.

The LIC IPO will accept subscriptions on Saturday (May 7), an uncommon move intended to attract more investors. On May 17, the shares will be placed on stock exchanges.

The LIC IPO price range is 902-949 per equity share. LIC policyholders would receive a 60 percent discount on equity shares, while retail investors and employees will receive a 45 percent discount. At the upper end of the issue price, investors can bid for a minimum of 15 shares (one lot) for $14,235.

By diluting a 3.5 percent stake in LIC, the government hopes to raise Rs 21,000 crore.

The valuation for an IPO would be the greatest in the Indian market’s history. Previously, the greatest fundraises were observed in Paytm’s IPO last year, which raised 18,300 crores, and Coal India’s IPO in 2010, which raised 15,200 crores.

The LIC has contacted policyholders via SMS and other means to inform them of the stock sale.

For several months, LIC has been alerting the public about the IPO through numerous platforms, including print and television commercials.

Due to the current market conditions, the country’s largest insurer cut the size of its IPO from 5% to 3.5 percent.

On September 1, 1956, LIC was created by merging and nationalising 245 private life insurance firms, with an initial capital of Rs. 5 crore.