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LIC IPO subscribed 68%

Published on May 04, 2022 18:00

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 10,44,20,535 shares as against 16,20,78,067 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (4 May 2022). The issue was subscribed 0.64 times.

The issue opened today (4 May 2022) and it will remain open for bidding till 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. The company will offer a discount of Rs 60 per share to LIC policyholders. For retail investors and eligible employees, the discount will be Rs 45 per share.

An investor can bid for a minimum of 15 equity shares and in multiples thereof.

The Government of India currently holds 100% stake in LIC. It is offering 221,374,920 shares, or 3.5% stake, through the initial offer.

The object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges. The Corporation expects that the proposed listing of its equity shares will enhance visibility and brand image as well as provide a public market for the equity shares in India.

Life Insurance Corporation of India (LIC) on Monday (2 May 2022) raised Rs 5,627.27 crore from anchor investors ahead of its mega initial public offering (IPO).

The state-owned insurer allotted about 5.93 crore shares to 123 investors at Rs 949 per share.

The Singapore government`s sovereign wealth fund (GIC) subscribed to shares worth over Rs 414 crore through three funds. BNP Investments subscribed to shares worth about Rs 450 crore.

Out of the total allocation to the anchor investors, 4,21,73,610 equity shares (71% of the total allocation) were allotted to 15 domestic mutual funds through 99 schemes.

SBI Mutual Fund subscribed to shares worth over Rs 1,000 crore through four different schemes.

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country, with a 61.6% market share in terms of premiums (or GWP), a 61.4% market share in terms of New Business Premium (or NBP), a 71.8% market share in terms of number of individual policies issued, a 88.8% market share in terms of number of group policies issued for the nine months ended 31 December 2021.

On a consolidated basis (shareholders account), LIC reported a net profit of Rs 1715.31 crore and net premium earned was Rs 285,341.93 crore in the nine months of the financial year 2021-22. Income from investments for the period under review was Rs 226,253.73 crore.

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