LIC IPO to Remain Open on Sunday: Investors Can Bid for India’s Largest IPO During Weekend

The bidding for the initial public offering (IPO) of the Life Insurance Corporation of India (LIC) would remain open on Sunday or May 8, sources confirmed Earlier, investors were allowed to bid for LIC IPO on Saturday or May 7. The sheer size of LIC IPO and huge interest from the retail investors had prompted the authority to make an exception for India’s largest initial public offering (IPO). Usually, bidding for IPOs is not available during the weekend.

LIC IPO kicked off on Wednesday or May 4 and will remain open till May 9, including the Saturday or May 7 and Sunday or May 8. The government is offloading 3.5 per cent of its stake in the insurance behemoth. Investors can bid for a total of 221,374,920 equity shares. Out of the total shares, up to 1,581,249 units are reserved for employees and up to 22,137,492 shares have been set aside for the policyholders. Around 50 percent of the net offer will be set aside for qualified institutional buyers. Retail investors can bid for 35 per cent while the remaining 15 per cent willl be reserved for non-institutional investors.

See also  Happy bride Mouni Roy dances with beau Suraj Namibar to ‘Mehendi Hai Rachne Wali’ and it is all things dreamy | Hindi Movie News

ASBA-Designated Bank Branches to Remain Open on Sunday

To ensure smooth banking system during the subscription period, the Reserve Bank of India has asked all Application Supported by Blocked Account (ASBA) designated bank branches to remain open on Sunday. “The Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday). The matter has been examined and it has been decided that banks may keep all their ASBA designated branches open on May 8, 2022 (Sunday) for the above purpose,” the RBI said in a circular. ASBA is the mechanism through which investors apply for shares in a public issue.

LIC IPO Subscription Status

The biggest IPO in the history of the Indian capital market, witnessed overwhelming response from the investors in the firs two days of bidding. Life Insurance Corporation IPO was subscribed 96 per cent so far on May 5. The issue received bids for 15.50 crore equity shares against offer size of 16.2 crore equity shares.

See also  Navy personnel injured in accident aboard docked nuclear submarine in Louisiana

The portion set aside for the retail investors was booked 86 per cent while quota reserved for qualified institutional buyers (QIBs) was subscribed 40 per cent. The portion allotted for Non institutional investors (NII) received bids for 43 per cent. The policyholders’ quota was subscribed 2.86 times while employee portion was subscribed  2.02 times.


The price band for the LIC IPO has been fixed at Rs 902-949 per equity share of face value Rs 10 each. LIC policyholders are eligible for a discount of Rs 60. A discount of Rs 45 will also be offered to retail investors and employees.

LIC IPO Anchor Book

The largest insurer in India garnered around Rs 5,620 crore from the anchor investors ahead of floating its public offer. Around 99 mutual funds invested Rs 4,001 crore. Foreign portfolio investors (FPIs), pension funds, corporates and other insurers also participated in the anchor investment.

Read all the Latest News , Breaking News and IPL 2022 Live Updates here.

Source link

We will be happy to hear your thoughts

Leave a reply

%d bloggers like this:
Shopping cart