Life Insurance Corporation (LIC), which recently concluded its initial public offering (IPO) with 2.95 times subscription, has set an IPO issue price of 949 per share. The country’s largest LIC IPO, which was open for public subscription between May 4 and May 9, received 47.83 crore bids as against the offer size of 16.21 crore. The price band of LIC IPO was fixed at Rs 902-949 per share and the company offered a discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees. LIC’s initial public offering has received 2.95 times subscription on the final day of bidding, with the portion reserved for qualified institutional buyers (QIBs) fully booked. The bids received were 47.83 crore against the offer size of 16.21 crore.
The shares are expected to be credited to the eligible investors on May 16 and the company is likely to see the listing on stock exchanges on May 17. Those who did not get the allotment of the shares will see the initiation of a refund today (Friday). The company finalised the share allotment on Thursday.
LIC IPO created a record with the number of applications for the stock of the country’s insurance behemoth crossing 5.9 million on May 8. The portion reserved for retail investors was fully subscribed on the third day and 1.59 times by the end of the fifth day of subscription. The issue has finally received 13.8 crore bids from retail individual investors, against 6.9 crore shares set aside for them.
DIPAM Secretary Tuhin Kanta Pandey has said the much-awaited IPO of Life Insurance Corporation was a tremendous success and the issue was subscribed nearly 3 times at the close. “We are pleased to inform you that the IPO offer which started on the 4th of May has closed today at 7 pm and it has met with tremendous success from all categories of investors; this will eventually lead to listing of LIC and deepen the capital market,” Pandey has said.
Pandey also said LIC IPO subscribed 2.95 times on the final day, which opened on May 4, and received bids for 47.83 crore equity shares against 16.20 crore shares on the offer. “Many new demat accounts opened due to LIC IPO. Allotment of LIC IPO will take place on May 12.”
LIC IPO Latest GMP
The share price of LIC on Friday is quoting at a discount of Rs 25 in the grey market. Market observers said the LIC IPO’s GMP (grey market premium) has been in the negative zone for the third successive day, which cannot be taken as good development ahead of the share listing date.
The market observers said that LIC IPO GMP today is minus Rs 25, which means LIC IPO grey market price has remained almost steady for the past 24 hours. On Thursday, the LIC IPO GMP was minus Rs 26.
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Source: News18