LIC's IPO witnessed a good response from the investors, getting subscribed 2.95 times after a marathon 6-day subscription period from 4 to 9 May. The initial share sale fetched ₹20,557 crore to the government.
Post listing, the state-owned insurer will become the fifth-largest company in India with a valuation above ₹6 lakh crore.
Only Reliance Industries, TCS, HDFC Bank and Infosys will have more capitalisation than the insurance giant.
LIC IPO SHARE PRICE
The Centre had fixed the issue price of LIC shares at ₹949 apiece for allotment to investors. LIC policyholders and retail investors have got the shares at a price of ₹889 and ₹904 apiece, respectively, after taking into account the discount offered.
The IPO of LIC closed on 9 May and shares were allocated to bidders on 12 May. The government sold more than 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO.
The price band of the issue was ₹902-949 a share. However, shares were allocated to investors on 12 May at the upper end of the price band.
LIC IPO LISTING
The shares of LIC will be listed on BSE and NSE on Tuesday.
Investors can check BSE India and NSE India websites to know the LIC IPO's listing price.
The LIC IPO, the country's largest to date, closed with nearly 3 times subscription, predominately lapped up by retail and institutional buyers, but foreign investor participation remained muted.
Till now, the amount mobilised from the Paytm IPO in 2021 was the largest ever at ₹18,300 crore, followed by Coal India (2010) at nearly ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.
Last month, LIC had reduced its IPO size to 3.5 per cent from 5 per cent decided earlier due to the prevailing choppy market conditions.
Even after the reduced size of over ₹20,557 crore, the LIC IPO is the biggest initial public offering ever in the country.
Before heading into the IPO, the life insurance giant had raised more than ₹5,627 crore from the anchor investors.
The share sale was initially planned to hit the markets in March. But the uncertainty in stock markets due to the Russia-Ukraine war pushed the issue to the current financial year, which started in April.
The proceeds from the LIC issue make up for about a third of the ₹65,000 crore disinvestment target set for the current financial year.
While it has already raised ₹3,058 crore from a minority share sale in ONGC, ₹211.14 crore is likely to come in after the handover of Pawan Hans management control to M/s Star9 Mobility Pvt Ltd, a consortium of M/s Big Charter Private Limited, M/s Maharaja Aviation Private Limited and M/s Almas Global Opportunity Fund SPC, by June.
In the last financial year, the Centre mopped up ₹13,531 crore from CPSE disinvestment, against the revised scaled-down target of ₹78,000 crore.
