LIC IPO total issue subscribed 0.75 times on day 2; retail portion subscribed 0.69 times

5 May 2022 , 11:36 AM

India’s mega issue LIC opened for subscription on day 2 and continued to see strong response from policyholders, employees and retail investors.

According to data with exchanges, Life Insurance Corporation of India’s initial public offering was subscribed 0.75 times on Thursday.

The policyholder quota was subscribed 2.26 times, while the portion reserved for employees was subscribed 1.46 times. The retail investor portion was subscribed 0.69 times. However, the non-institutional investor quota was subscribed just 0.34 times and the QIB portion was subscribed 0.34 times.

The issue saw a robust response from its Policy Holders, its Employees and the Retail Investors. GoI, acting through the Ministry of Finance is looking to raise as much as Rs21k crore by dilution 3.5% of its holding.

On the first day of bidding, the reserved portion for eligible policyholders was subscribed 1.99 times, the portion reserved for eligible employees was subscribed 1.17 times. Retail investors bid 0.60 times the shares reserved for them, while the part set aside for non-institutional investors was subscribed 0.27 times. Qualified institutional buyers portion saw a subscription of 0.33 times. Overall the issue was subscribed 0.67 times on day 1.

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.