LIC IPO issue fully subscribed on day 2; Policyholder -; Employees bid rush continues

5 May 2022 , 07:50 PM

Life Insurance Corporation of India’s initial public offering, the country’s biggest ever, was fully subscribed on the second day of bidding.

The issue opened for subscription on Wednesday, May 4, 2022 and closed on May 9.

As compared to day 1 while QIB saw little movement and is expected to see increased inflows only on the last day, it was subscribed 0.40 times; the NII portion was subscribed 0.47 times; Retail Category was subscribed 0.93 times; Eligible Policyholder and Employee portion saw an increased interest and was subscribed 3.11 times and 2.21 times respectively.

The offer received bids for 16,68,27,570 shares against the offered 16,20,78,067 equity shares (excluding shares offered to anchor investors), as per the 7:00 pm data available on the bourses.

The IPO is through an offer-for-sale (“OFS”) of up to 221,374,920 Equity Shares of Face Value of Rs10 each.

RBI vide its Circular dated May 4 recommended all bank branches designated to handle ASBA applications kept open to public on Sunday, May 8,2022. The same reflect on the exchanges and bids will be accepted on Saturday as well as Sunday now between 10am to 7pm.

India’s largest life insurer, LIC had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of New Business Premium (or NBP), 71.8% in terms of number of individual policies issued, and 88.8% in terms of number of group policies issued, for the nine months ended December 31, 2021

Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers to the issue.