LIC raises Rs 5627 cr from anchor investors

Life Insurance Corporation of India (LIC) on Monday (2 May 2022) raised Rs 5,627.27 crore from anchor investors ahead of its mega initial public offering (IPO).

The state-owned insurer allotted about 5.93 crore shares to 123 investors at Rs 949 per share.

The Singapore government's sovereign wealth fund (GIC) subscribed to shares worth over Rs 414 crore through three funds. BNP Investments subscribed to shares worth about Rs 450 crore.

Out of the total allocation to the anchor investors, 4,21,73,610 equity shares (71% of the total allocation) were allotted to 15 domestic mutual funds through 99 schemes.

SBI Mutual Fund subscribed to shares worth over Rs 1,000 crore through four different schemes.

The initial public offering of Life Insurance Corporation of India (LIC) will open on Wednesday, 4 May 2022 and will close on Monday, 9 May 2022.

The Government of India currently holds 100% stake in LIC. It is offering 22.13 crore shares, or 3.5% stake, through the initial offer.

The price band has been set at Rs 902 to Rs 949. The company will offer a discount of Rs 60 per share to LIC policyholders. For retail investors and eligible employees, the discount will be Rs 45 per share.

The firm has reserved around 15.81 lakh shares for eligible employees while 2.21 crore shares are reserved for policyholders. About 6.91 crore shares are reserved for retail investors category.

An investor can bid for a minimum of 15 equity shares and in multiples thereof.

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country, with a 61.6% market share in terms of premiums (or GWP), a 61.4% market share in terms of New Business Premium (or NBP), a 71.8% market share in terms of number of individual policies issued, a 88.8% market share in terms of number of group policies issued for the nine months ended 31 December 2021.

On a consolidated basis (shareholders account), LIC reported a net profit of Rs 1715.31 crore and total income of Rs 1757.35 crore in the nine months of the financial year 2021-22.

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