LIC IPO is priced at Rs.949 and will be listed next week

The IPO issue price for Life Insurance Corporation (LIC), which just completed India’s largest ever public offering, has been fixed at Rs.949 at the top-end of the stated range.

LIC’s sale is the world’s fourth-largest this year, breaking India’s record as the country’s largest IPO. The launch of LIC comes at a time when global capital-market activity has slowed dramatically as the conflict in Ukraine fuels market volatility and saps investor appetite.

On the last day of bidding on Monday, the issue was subscribed 2.95 times, owing to significant demand from retail investors, workers, and policyholders of the insurance.

Because of the reductions, retail investors and LIC policyholders were among the most enthused about the offering. Days before the offering was to be closed, the part set aside for them was completely consumed. The anchor component of the IPO attracted sovereign funds from Norway and Singapore, with additional international investors joining only on the final day.

Overall, the LIC offer was roughly three times oversubscribed. The funds will assist the government close a budget gap that is likely to worsen as global commodities prices rise.

According to the prospectus, the ten banks involved in the IPO were paid a total of 118 million rupees in fees, a fraction of what they could have earned in a similar sale.

According to market statistics, the insurance behemoth got bids for 478.3 million shares out of 162 million on offer. The offer got more than 7.3 million applications, shattering Anil Ambani’s 14-year-old record of 4.8 million applications for his Reliance Power share sale in 2008.

Bidders who did not receive a share allotment will begin receiving refunds on Friday. Shares will be credited to qualifying investors on Monday, and the stock is expected to list on Tuesday.

The government sold 22.13 crore shares, or 3.5 percent of the firm, valued at Rs 6 lakh crore, or almost 1.12 times the inherent value of Rs 5.4 lakh crore, making it the largest ever IPO in the domestic primary market.