Life Insurance Corporation’s IPO was fully subscribed on day 2 of the bidding process
The IPO of the life insurance company was fully subscribed on the second day of the auction, according to data from the Bombay Stock Exchange.
The initial public offering, or IPO, began on Wednesday and will end on May 9.
On Thursday, investors made offers for 16,68,60,765 shares against the 16,20,78,067 that were offered for subscription.
The subscription portion reserved for LIC policyholders was oversubscribed by 3.11 times, while the portion reserved for employees of the public company was oversubscribed by 2.21 times.
The quotas of retail investors, qualified institutional buyers and non-institutional investors were respectively subscribed at 90%, 40% and 47%. The company offered a rebate of Rs 60 per share for its policyholders and Rs 45 per share for retail investors and LIC employees.
On Wednesday, investors had made offers for 10,44,20,535 shares against the 16,20,78,067 shares offered for subscription.
An initial public offering is a process in which private companies offer stock to the public by issuing new stock. At the end of the IPO process, the company is listed on the stock exchange and is authorized to raise capital from public investors.
The price range for LIC’s IPO has been set between Rs 902 and Rs 949 per share. Investors can invest in the IPO in a lot size of 15 shares, and multiples thereafter.
The Center hopes to raise Rs 21,000 crore through the public offering. He said LIC’s IPO could be India’s biggest ever. The public company is expected to go public on May 17.