Biznextindia : The biggest initial public offering (IPO) of public sector insurance giant Life Insurance Corporation (LIC) has been opened for subscription on May 4, Wednesday and by 1 pm it is subscribed 33 percent with LIC policyholders and employee’s driving the subscription along with retail investors.
By 1 pm, the policyholders have subscribed 1.05 times the portion reserved for them. The employee reserved portion has been subscribed 58 percent, while retail investors portion has been subscribed 36 percent. Non Institutional investors have subscribed 8 percent of their portion while qualified institutional buyers bought 6060 shares against allotted quota of 3.95 crore shares, till now.
The non-institutional category, consisting of corporates, individuals, and others has seen muted demand, with only 5 per cent subscription so far.
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. 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.