New Delhi | Jagran Business Desk: The Initial Public Offering (IPO) of the Life Insurance Corporation of India (LIC) entered its fifth day on Sunday (May 8). So far, the IPO has received strong demand from retail investors, policyholders, and employees. On the fifth day of bidding, the IPO was subscribed 1.76 times. For the unversed, the largest ever IPO of the Indian primary markets, aggregating Rs 20,557 crore, is open for subscription till May 9.
LIC IPO GMP
LIC IPO GMP (Grey Market Premium) stood at Rs 50 on May 7. The GMP has lowered slightly after the recent sell-off in the secondary markets. However, the GMP has now started to get better as it stood at Rs 45 on May 6. The premium could further increase in the coming days ahead of the IPO with the rising demand for IPO shares.
LIC IPO subscription status
LIC IPO garnered total bids worth Rs 24,365 crore till the fourth day of subscription.
The portion set aside for policyholders’ was subscribed 4.67 times, according to the National Stock Exchange. The employees’ portion was booked 3.54 times on the fourth day. Retail investors bid 1.46 times for the shares reserved for them on Saturday (May 7). Non-institutional investors’ reserved portion was fully subscribed on May 6. The quota allotted for qualified institutional investors was booked 67 percent on Day 4.
LIC will sell its shares in the range of Rs 902-949 apiece but has given a discount of Rs 60 per share to its policyholders, who will bid for the issue. Eligible Employees and retail bidders will get a discount of Rs 45 per share. The company has reserved 50 percent of the net issue for the qualified institutional bidders (QIB), whereas non-institutional bidders (NIIs) will get 15 percent of the issue. The remaining 35 percent portion has been allocated to retail bidders. Meanwhile, the Life Insurance Corporation of India is valued at Rs 6 lakh crore, which is about 1.12 times its embedded value (EV) of Rs 5.4 lakh crore.
Posted By: Sugandha Jha