Retail Individual Investor category picked up nearly 60 per cent of the 6.9 crore shares set aside for this segment
However, demand from qualified institutional buyers (QIBs) and non-institutional investors was muted. The non-institutional investors’ portion was subscribed 27 per cent while QIBs’ portion was slightly higher at 33 per cent
Mumbai:
LIC’s public offer, the country’s biggest-ever IPO, saw the policyholders’ portion being oversubscribed on the first day itself on Wednesday, though overall subscription stood at 67 per cent.
The government aims to generate about Rs 21,000 crore by selling 3.5 per cent stake in the insurance behemoth.
LIC’s initial public offering (IPO), open for retail and institutional investors, is set to close on May 9. The issue period also includes bidding on Saturday, May 7.
The portion reserved for policyholders was subscribed 1.9 times, while that for employees was fully subscribed during the first day itself, as per data available on the BSE.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60.
However, demand from qualified institutional buyers (QIBs) and non-institutional investors was muted. The non-institutional investors’ portion was subscribed 27 per cent while QIBs’ portion was slightly higher at 33 per cent.
Retail Individual Investor category picked up nearly 60 per cent of the 6.9 crore shares set aside for this segment.
The offer received bids for 10,86,45,360 shares against the offered 16,20,78,067 equity shares (excluding shares offered to anchor investors), as per data available on the bourses at 7 pm.
The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17.
LIC has already mopped up a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions.
Anchor Investors (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.
LIC IPO is a good opportunity for retail investors: Experts
The IPO of LIC hit the market on Wednesday and will remain open for bidding till 9th May 2022. Stock market experts are bullish on the IPO and the grey market is also giving positive signals.
Ravi Singh, head of research, Share India, said in the grey market LIC IPO is trading at around Rs 1200-1250 which is around 25 to 30 per cent higher than the issue price. This is giving confidence to the retail investors to invest in LIC IPO.
Singh said anchor investors have already invested Rs 5,620 crore in LIC IPO. There is also a discount for retail investors and policyholders. Retail investors and employees to get the benefit of 5 per cent and policyholders will get the benefit of 7 per cent.
The Centre plans to raise Rs 21,000 crore by diluting a 3.5 per cent stake in LIC. D K Mishra, a stock market expert, said the LIC IPO price band is good where the subscription is going to be very good.
“If you see the size of the LIC market coverage, LIC has captured around 65 per cent market share of the total life insurance policies of this country.”
“They have got a huge network of nearly 3,500 branches or satellite office and they have got a huge number of agency agents employed approximately 13.5 lakhs agents are working for the LIC and overall asset size is quite huge,” he said. Mishra said retail investors who are interested in the equity market and who are willing to go into the real earnings share market it is a good opportunity for them to invest.
Talking about the posting gain, Mishra said “we expect it should not be less than 1.5 times of the issue price that’s what is our minimum expectation.”
So it is a good opportunity that retail investors who should come forward and invest if they want to earn profit.