As of 3:10 pm on the last day of the bidding, LIC IPO has been subscribed 2.71 times with retail investors' category booked 1.90x. Of the total, the policyholders' portion was subscribed 5.88 times, while that for employees was subscribed 4.27 times.
Qualified Institutional Buyers (QIBs) and Non Institutional Investors (NIIs) bid 2.47 times and 2.45 times respectively so far, BSE data showed.
As per market observers, LIC shares are available at a premium (GMP) of ₹36 in the grey market today. The share allotment is expected to happen on May 12 and the shares of the company will be listing on stock exchanges BSE and NSE on Tuesday, May 17, 2022.
The government aims to generate about ₹21,000 crore by diluting 3.5% stake. LIC reduced its IPO size from 5% due to the prevailing choppy market conditions. This is substantially lower than the earlier projection of about ₹60,000 crore. Even after the reduced size of about ₹20,557 crore, LIC IPO is set to be the biggest public offering ever in the country.
The anchor investor portion of the insurance behemoth's initial share sale was oversubscribed last week, raising around ₹5,620 crore from anchor investors, ahead of its issue.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956. As of December 2021, LIC had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of new business premium, 71.8% in terms of the number of individual policies issued, and 88.8% in terms of the number of group policies issued.
