LIC IPO: LIC policyholders portion fully subscribed on its debut

New Delhi: The initial public offering (IPO) of the Life Insurance Corporation (LIC) opened subscription at 10 am today (May 4). It will remain open to subscription till May 9. LIC IPO is expected to be a landmark public issue in the history of the Indian capital market and is poised to be India`s biggest IPO till date. The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.

The final IPO price of LIC will be determined after the subscription closes.

At 12.24 PM, LIC IPO was subscribed 30 percent. Policyholders was fully subscribed, employees quota saw 52% subscription and retail category was subscribed 34% of its allotted portion.

LIC’s embedded value, which is a measure of the consolidated shareholders’ value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.

LIC was formed by merging and nationalizing as many as 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.

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