Small investors push LIC IPO over the line; FPIs invest less than Rs 4k cr

Move to have a separate quota for policyholders proves a game-changer, say experts

Usually, large share sales bank on foreign portfolio investors’ (FPIs) backing to sail through. However, the Life Insurance Corporation of India’s (LIC’s) over Rs 20,500-crore initial public offering (IPO) managed to pull through with support of the country’s retail investors.

In LIC’s maiden offering, FPIs invested less than Rs 4,000 crore — less than a fifth of the issue size and only 5 per cent of the total subscription garnered. On the other hand, individual investors poured in over Rs 25,000 crore — even more if one adds the indirect investments through the mutual fund route.

The IPO garnered over