Initial Public Offering (IPO) of LIC- Highlights

May 11, 2022

The biggest-ever initial public offering (IPO) of India is by the Life Insurance Corporation of India (LIC). It has been fully booked under all the offered categories

What percentage of shares is being sold?

LIC’s IPO has received bids for 2.95 times the shares that were being offered. This helped the central government to raise Rs 21,000 crore as they sold 3.5% of the stake in LIC.

By how many times have the shares been subscribed in the different categories?

The IPO size is 16.2 crore equity shares but bids have been received for 47.77 crore equity shares. The categorically wise subscriptions are:

Policyholders- This portion has been subscribed by 6.11 times the allotted quota.
Employees- This portion has been subscribed by 4.39 times the allotted quota.
Retail Investors- This portion has been subscribed by 1.99 times the allotted quota.
Qualified Institutional Buyers- This portion has been subscribed by 2.83 times the allotted quota.
Non-institutional Investors- This portion has been subscribed by 2.91 times the allotted quota.

When will the shares be allocated to the bidders?

On 12^th May, the bidders of this IPO will be allocated shares. On 17^th May 2022, it will be listed on the stock exchanges.

What is the price band of the shares?

Rs 902-949 per equity share was fixed by the LIC for the issue. The eligible employees as well as the retail investors got a discount of Rs 45 per equity share. The policyholders received a discount of Rs 60 per share.

What is an initial public offering?

An IPO is a process of offering shares to the public in which a company offers newly issued shares for the first time. IPOs are used to generate new equity capital for the companies. Through IPOs the investments of the private shareholders like the founders of the company can be monetized. After the IPOs are offered and listed the shares are freely traded on the stock exchanges.

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