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Mumbai: Investors, who applied for Life Insurance Corporation (LIC) shares in its Initial Public Offering (IPO), received allotment on Friday. The shares were issued at ₹949 apiece, the upper end of the price range. The government has raised ₹21,008 crore in the IPO – the country’s biggest ever public issue.

Most retail investors, who have subscribed to the issue, received allotment as the category was subscribed two times. In the retail category, share allotment was done based on the draw of lots. This means 50% of the applicants got allotment of at least 15 shares.

LIC initiated a refund on Friday to bidders, who did not get allotment. LIC shares are likely to get listed on Tuesday.



The LIC IPO, which ended on May 9, was subscribed 2.95 times, led by strong demand from the insurer’s policyholders and employees. The portion reserved for policyholders was subscribed 6.12 times, while the employees’ quota was subscribed 4.40 times. The non-institutional or high networth individuals’ category and qualified institutional buyers’ portion were subscribed 2.91 times and 2.83 times, respectively.

The issue by the insurance behemoth received bids for 478.3 million shares against the 162 million on sale. The issue received more than 7.3 million applications, breaking the 14-year-old record of Anil Ambani‘s

share sale that drew 4.8 million applications in 2008.

The IPO values LIC at ₹6 lakh crore, about 1.12 times the company’s embedded value of ₹5.4 lakh crore.

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