The LIC Mega IPO will be open for subscriptions over the weekend.
The LIC public offer will be open for subscription even on weekends, allowing anyone to participate in the state-owned insurer’s massive IPO.
This is possibly the first time a public offer has received a special dispensation.
Bidding will also take place on Saturday, May 7, 2022, and Sunday, May 8, 2022, according to LIC.
Earlier bidding was only permitted on Saturday, May 7th.
To help with this, the Reserve Bank of India (RBI) authorised all ASBA-designated bank offices to stay open on Sunday to process applications for LIC’s initial public offering.
On Wednesday, individual and institutional investors could subscribe to the state-owned LIC’s Initial Public Offering (IPO), which is the country’s largest ever.
The promotion will end on May 9th (Monday).
The government has requested that all bank offices designated to execute ASBA (Application Supported by Blocked Amount) applications be kept open for public on May 8, 2022 (Sunday) to facilitate bidding for the LIC IPO, RBI said in a statement on Wednesday.
“The problem has been examined, and banks may keep all of their ASBA authorised branches open on May 8, 2022 (Sunday) for the above purpose,” it had stated.
Generally, ASBA is the mechanism through which investors apply for shares in a public issue.
Up to 22.13 crore equity shares would be sold through an Offer-For-Sale (OFS). The stock is expected to go public on May 17.
Due to the choppy market conditions, LIC reduced the size of its initial public offering (IPO) from 5% to 3.5 percent. Even with the lower amount of around 20,557 crores, the LIC IPO will remain the country’s largest initial public offering.
The sum raised through Paytm’s initial public offering (IPO) in 2021 was the greatest ever, at 18,300 crores, followed by Coal India (2010) at about 15,500 crore and Reliance Power (2008) at 11,700 crores.
On September 1, 1956, LIC was founded by merging and nationalising 245 private life insurance businesses with an initial capital of 5 crores.