New Delhi | Jagran Business Desk: Life Insurance Corporation's (LIC) initial public offering (IPO) has entered day 2 on May 5, 2022 with more than half of the issue already been booked. Around 67 per cent of the LIC IPO was booked by subscribers on the day 1, May 4 as the biggest initial public offering in the history of Indian markets opened. On the first day of the bidding itself, the LIC IPO has been subscribed 1.99 times the portion reserved for LIC policyholders. Now, the LIC IPO will open for the general public. Buyers must note that the public issue will remain open for bidding till 9th May 2022 and the Centre has fixed the price band of the share at Rs 902 to Rs 949.

Till now, the employee reserved portion has been subscribed 117 percent, retail investors portion has been subscribed 60 percent, Non Institutional investors have subscribed 27 percent, and qualified institutional investors have bought 33 percent of the allotted portion. Around 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders. The government aims to raise ₹21,000 crore from this IPO.

Here's what investors need to know:

1. The LIC IPO applicants can apply for the issue in lots. One LIC IPO lot comprises 15 LIC shares.

2. An applicant can apply for a minimum of 1 and a maximum of 14 lots. This means the buyer can apply for 210 LIC shares.

3. Also, the minimum amount required to apply for the LIC IPO is Rs 14,235 (₹949 x 15).

4. The total value of LIC IPO is set at ₹21,000 crore. This is the highest public issue to date in the history of Indian markets.

5. The government has planned to sell a 3.5 per cent stake in the company instead of the five per cent listed in the previous Draft Red Herring Prospectus (DRHP).

6. The LIC shares are likely to be listed on BSE and NSE on May 17.

Posted By: Sugandha Jha