LIC IPO Subscription Day 3 Updates: IPO Booked 1.35 Times So Far; Retail Fully Subscribed

LIC IPO: LIC‘s mega Rs 20,557-crore initial public offering opened for its third day of subscription. The issue sailed through on Thursday, garnering bids for 21.85 crore shares against the 16.21 crore on offer. The LIC IPO will remain open till Monday, May 9. It will remain open for investors on Saturday and Sunday as well. The initial public offering of the country’s largest life insurance company Life Insurance Corporation of India has subscribed 1.35 times, receiving bids for 21.85 crore equity shares against offer size of 16.21 crore equity shares.

LIC IPO Subscription Update as of 1:00 PM on Day 3

-Qualified Institutional Buyers (QIBs) subscribed 0.56 times

-Non-Institutional Investors subscribed 0.71 times

-Retail Individual Investors (RIIs) subscribed 1.21 times

-Employees subscribed 3.01 times

-Policyholders subscribed 3.94 times

-Total subscribed 1.35 times


According to market observers, LIC share price has remained steady in gray market today. They said that shares of LIC are available at a premium of Rs 65 in gray market today. As per the market observers, LIC IPO gray market premium (GMP) today is Rs 65, unchanged from yesterday evening gray market premium. According to market observers, key secondary market indices closing around their Wednesday closing levels could be the possible reason for gray market premium of the insurance behemoth remaining steady. However, they said that LIC IPO GMP has come down from around Rs 90 to Rs 65 levels in last three days, which is mainly because of the negative secondary market sentiments. They expected some upside in gray market sentiment once there is trend reversal at Dalal Street trade pattern.

LKP Securities said: “India’s life insurance industry is expected to grow rapidly, owing to a relatively underpenetrated market and expanding awareness, which presents a multi-year growth opportunity. LIC has been providing life insurance in India for over 65 years and is the countrys biggest life insurer, with a significant brand value advantage. There are concerns about losing market share to private players and having lower profitability and revenue growth when compared to private players.”

“However, we believe that LICs distribution advantage, increasing sales mix of direct and corporate channels, and a gradual shift to high margin non-participating products could be possible drivers for LICs future growth, negating lower than industry growth rates. At the upper price band, the stock is priced at 1.1x of its 2QFY22 Indian Embedded value (Market capitalization/Embedded value: Rs 6 trillion/Rs 5.39 trillion), which is at a significant discount to its listed peers. Currently listed insurance companies trade at Market capitalization/EV multiple of ~2.8x. LIC has a marquee anchor list of investors and we recommend subscribe to the LIC IPO,” the brokerage.

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