LIC IPO Expired today: Subscribed 2.92 times

The subscription period for Life Insurance Corporation of India‘s $2.7 billion public offering is slated to expire on Monday after almost a week of bidding. Some have dubbed India’s “Aramco moment” since the government limited the IPO’s fundraising by around 60% due to the Ukraine conflict, which has caused global market concern. The subscription period for this issue began on May 4th. According to reports, the Qualified Institutional Buyer part was sold out before 11 a.m. on day 6. Saudi Aramco, Saudi Arabia’s major state-owned oil business, raised approximately $25.6 billion in the world’s largest IPO ever in 2019, breaking Alibaba’s 2014 record.

On the last day, the LIC IPO was subscribed 2.91 times.

The Life Insurance Corporation of India’s initial public offering (IPO) had a robust response from investors, with bids for 47.17 crore equity shares received versus an IPO size of 16.2 crore equity shares. Policyholders’ portion has been reserved 5.99 times, workers’ piece 4.32 times, and retail investors’ portion 1.95 times, while qualified institutional purchasers’ portion has been reserved 2.83 times and non-institutional investors’ portion 2.88 times.

Interesting facts about the LIC IPO:

On September 1, 1956, LIC was created by combining and nationalising 245 private life insurance firms, with a starting capital of Rs 5 crore. It offers 32 different plans (16 participating and 16 non-participating) as well as seven different optional rider features. There are 11 different group packages available from the insurer.

LIC‘s initial public offering continues to draw investors despite the market’s decline. On the past day, the issue has been subscribed 2.5 times. Quotas for NIIs and QIBs were also oversubscribed by two times.

The IPO was 1.79 times subscribed on the last day of the offering. According to statistics cited by news agency PTI, 29,08,27,860 bids were received against 16,20,78,067 shares on sale.

For the 2,96,48,427 shares designated for non-institutional investors (NIIs), a total of 3,67,73,040 bids were received.

The shares earmarked for non-institutional investors, including high-net-worth individuals, had been completely subscribed the day before.

The IPO experienced a low response from the Qualified Institutional Buyer (QIB) category, with only 0.67 percent of the shares receiving bids on the fourth day, Saturday, according to PTI.

The price band for the country’s largest IPO has been established at 902-949 per equity share. The government hopes to collect around 21,000 crore by diluting about 3.5 percent of the insurance giant’s stock.