All you need to know about LIC IPO before subscribing it

The largest IPO (initial public offering) of India, LIC has been opened for subscription on Wednesday. Through this IPO, the government aims to raise Rs 21,000 crore through diluting its 3.5 per cent stake in the insurance company. This makes LIC (Life Corporation of India) IPO the biggest ever public offering in India.

Also Read: Top 10 Indian Startups in India As Per Market Cap in 2022

LIC IPO that is open for subscription by retail as well as institutional investors. The IPO will close on May 9, 2022.

What is the price band?

The price band has been fixed by LIC at Rs 902 – Rs 949 per equity share. This offer holds reservation for eligible policyholders and employees. Furthermore, the retail investors and employees will be able to avail a discount of Rs 45 per equity share, while the policyholders will enjoy discount of Rs 60 per share.

The sale for share is through an offer for sale (OFS) of up to 22.13 crore equity shares. The shares are scheduled to be listed on 17 May, 2022.

A little more than Rs 5,627 crore has been kept aside by LIC from anchor investors led mainly by domestic institutions. Anchor Investors (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share.

Furthermore, 10 per cent of the shares are reserved for LIC policyholders, while 0.7 per cent has been reserved for LIC employees.

Policyholder portion already oversubscribed within hours of IPO opening

Reacting enthusiastically, policyholders of LIC have oversubscribed the portion set for them within few hours. By 1:45 in afternoon, the policyholder portion was subscribed 1.38 times the amount set aside for them. Against the 2,21,37,492 shares reserved for policyholders, bids have been submitted for 3,04,91,625 shares.

Also Read: Do Startups and IPOs go together? Experts suggest difficulties

As LIC IPO has been awaited in market, its first day subscription has ben quite overwhelming. Are you planning on subscribing to the LIC IPO? Share your thoughts in section below.

Ayswarya Kumar

Meet Ayswarya, a dedicated contributor to India Observers. Specializing in Lifestyle and Health, Ayswarya brings a fresh perspective to our readers. Stay tuned for her engaging coverage on topics ranging from fashion and fitness to well-being and lifestyle trends. Explore a world of enriching content with Ayswarya at the helm.

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