LIC IPO subscribed 1.8x a day ahead of close, big push from policyholders

Life Insurance Corporation’s (LIC’s) initial public offering (IPO) was subscribed 1.79 times on Sunday, a day before its close. The policyholder quota was subscribed over 5 times, employee portion 3.8 times and retail individual investor quota 1.6 times.

The institutional investor and wealthy investor have seen subscriptions of 67 per cent and 1.24 times, respectively.

Over the weekend, the IPO saw 1.2 million investors submit their bids worth over Rs 6,000 crore, said investment bankers.

The total applications received by the IPO have reached 5.9 million, highest-ever for a public offering in the domestic market. LIC was the first IPO to remain open on weekends.

The government has set the price band for the IPO between Rs 902 to Rs 949 per share, with an additional discount of Rs 45 and Rs 60, for retail and policyholders, respectively. At the upper-end of the price-band, LIC will have a market value of Rs 6 trillion, making it India’s fifth most valuable firm.