The blockbuster initial public offering (IPO) of the country’s largest life insurer Life Insurance Corporation of India (LIC) which opened for subscription on Wednesday, May 4, 2022, was subscribed by around 82 per cent so far on the second day. It will be available for public subscription till Monday, May 9, 2022. The price band of LIC IPO is fixed at Rs 902-949 per share and the company is offering a discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees. Investors who wish to subscribe to LIC IPO can bid in a lot of 15 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,235 (excluding discounts) to get a single lot of LIC. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
LIC IPO Subscription Update as of 12:00 PM on Day 2
-Qualified Institutional Buyers (QIBs) subscribed 0.34 times
-Non Institutional Investors subscribed 0.32 times
-Retail Individual Investors (RIIs) subscribed 0.75 times
-Employees subscribed 1.65 times
-Policyholders subscribed 2.48 times
-Total subscribed 0.82 times
LIC IPO: GMP Today
Market observers said that LIC IPO gray market premium (GMP) today is ₹60, which is Rs 5 lower from its yesterday evening GMP of Rs 65. They said that such dip in LIC IPO GMP can be attributed to negative secondary market sentiments after surprise RBI’s repo rate and CRR hike. However, they said that policyholders and employees have reacted strongly to the initial offer of insurance behemoth and expected strong response from investors in upcoming days. They said that LIC IPO GMP has come down from near Rs 90 to Rs 60 in last three days, which is obvious as stock market has been nosedived on successive sessions this week.
As per the market observers, LIC IPO GMP today is Rs 60, which means gray market is expecting that LIC IPO listing would be around Rs 1009, which is around 6.50 per cent higher LIC IPO price band of Rs 902 to Rs 949 per equity share .
However, stock market experts said that GMP should not be the criteria for deciding success or failure of a public issue. They said that GMP is an unofficial data that has nothing to do with the financials of the company. They advised investors to look at the financials of the company as they give concrete idea about the fundamentals of a company.
The government of India is aiming to garner Rs 21,000 crore at the upper end of the price band by liquidating 3.5 per cent of its stake in the insurance behemoth. Of these, LIC mopped up Rs 5,630 crore from anchor investors on May 2 diluting about 59.3 million shares to 123 investors at Rs 949 apiece. Marquee investors, domestic mutual fund companies, domestic insurance companies, corporates and NPS were part of the anchor allotment.
Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, Nomura Financial Advisory and Securities India, Goldman Sachs India Securities, ICICI Securities, JM Financial, JP Morgan India and SBI Capital Markets are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.
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