LIC IPO subscribed 1.02 times, policyholders’ quota over 3 times
The initial public offering of insurance major Life Insurance Corporation of India has been subscribed 1.02 times on the second day of the issue.
The initial public offering of insurance major Life Insurance Corporation of India has been subscribed 1.02 times on the second day of the issue.
"We expect post-IPO improvements in LIC's operating performance and profitability to drive comparable changes across the wider life insurance sector."
The country's largest IPO will remain open for public subscription till May 9. LIC has set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. Policyholders are offered a discount of Rs 60 per equity share, while retail investors and employees are offered a discount of Rs 45 on each share.
The shares would be available at a price brand of Rs.902-949 per share.
According to sources, on the first day itself, the bids from the anchor investors or large investors are twice the size of the anchor book.
Left parties today raised an alarm over the Life Insurance Corporation (LIC) IPO when it is about to hit the stock market in a few days.
Answering questions from prospective investors during roadshows top officials of LIC clarified that the Government of India does not have any plan of further dilution of its stake in the Corporation. Officials said the Corporation has sufficient capital for the next two years and won't require any funding support from the government.
Post the Union Budget FY22, the government has taken several legislative and executive steps to pave the way for the mega IPO.
The IPO of LIC would contribute a huge chunk to the government's budgeted disinvestment kitty of Rs 2.10 lakh crore this fiscal.
The decision to sell a part of the government’s stake in the LIC for IPO was one of the major announcements of the Union Budget 2020-21
