Biznextindia : The biggest initial public offering (IPO) of public sector insurance giant Life Insurance Corporation (LIC) got 67 percent subscription on day-1 of the with LIC policyholders and employee’s driving the subscription along with retail investors.
According to a report by moneycontrol.com, LIC policyholders led the bout as they lapped up twice their portion of the offer. The portion allocated to the employees also got subscription of 1.17 times itself while the retail investors closed on 60 percent of their allocated portion. The portion set aside for non-institutional investors was subscribed 0.27 times while qualified institutional buyers lapped up 33 percent of their allocated portion on day one.
The LIC IPO will remain open till May 9. The government of India is looking to raise Rs 20,557 crore from the share sale by diluting 3.5 per cent of its stake in the insurance behemoth. The IPO is an offer-for-sale of up to 221,374,920 equity shares of face value of Rs 10 each. Earlier, the government has proposed to offload 5 percent stake, but later reduced it to 3.5 percent keeping in view volatile market conditions due to the Ukraine conflict.