New Delhi: The public issue of Life Insurance Corporation of India (LIC) has garnered excellent demand from investors as it received bids worth Rs 43,933.5 crore till May 9, the final day of bidding.
The offer was subscribed 2.95 times as investors put in bids for 47.82 crore equity shares against IPO size of 16.20 crore shares, as per the subscription data available on exchanges. The participation by LIC policyholders remained quite strong as they bid 6.12 times the allotted quota and the value of shares subscribed for was Rs 12,034 crore.
“LIC IPO subscribed 2.95 times on the final day which opened on May 4 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” said Department of Investment and public asset management (DIPAM) Secretary Tuhin Kanta Pandey.
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.