The LIC IPO got off to a flying start, with the national insurer raising around Rs 5,620 crore. According to sources, this occurred after the anchor investor component of the first public offering was completely subscribed.
The government is selling 22,13,74,920 LIC shares for a price range of Rs 902-949 per share.
The government hoped to raise around Rs 21,000 crore. From May 4 to May 9, the issue would be available to institutional and retail purchasers.
The LIC share sale will raise the most money ever raised in the Indian stock market through an initial public offering. Previous high-profile fund-raisings included PayTM’s IPO in 2021 at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.
Over 9.88 crore LIC shares are allocated for qualified institutional purchasers and over 2.96 crore shares are reserved for non-institutional buyers out of the over 22.13 crore LIC shares on offer.
Employees and policyholders are entitled to up to 15,81,249 shares and 2,21,37,492 shares, respectively.
While retail investors and LIC workers would receive a Rs 45 per share discount, LIC policyholders bidding in the IPO will receive a Rs 60 per share discount.
On May 17, LIC will be listed and begin trading on stock markets.
As per investor input, the market value of the government-owned LIC is 1.1 times its inherent value or Rs 6 lakh crore.