MUMBAI: Rs 21,000 crore public output (IPO) for life insurance giant creature LIC received a huge response from organizations in the country and had been oversubscribed almost three times by the time of closing on Monday. LIC policyholders, employees, retail investors, high net worth investors (HNI) and domestic financial institutions have actively contributed to the offering. On the other hand, offshore funds – despite initial strong demand from this influential group of investors – turned out to be mostly expectants, according to final registration figures.
During the press conference after the issue, Tuhin Kanta Pandey, secretary of the Dipam government divestment division responsible for bringing the LIC to the public, described the offering as an ‘Atmanirbhar’ issue as investors in the countries, especially Indian financial institutions, that have seen it through. The issue opened on May 4 and, unlike other offers in the past, investors can bid in the IPO on all alternate days – including Saturday and Sunday – as the government has made special arrangements to quench the usual last-day rush seen in most premium offers.
According to the above data BSE, the share for LIC policyholders is registered 6.1 times, for qualified employees 4.4 times, for retail investors almost 2 times, for HNIs 2.9 times and for retail investors. buy organization 2.8 times. The IPO received an auction of nearly 48 crore shares compared to the 16.2 crore offered for sale. The day before the IPO was open to all investors, the government placed LIC shares worth around Rs 5,600 crore with the participation of local and foreign investors. This is the first divestment offer in the history of Indian capital markets with the participation of anchor investors.
Through this largest IPO in India, the government divested 3.5% of its equity in the life insurance sector. Under the offer’s pricing policy, LIC policyholders will get a discount of Rs 60 per share on the final price, while retail investors get Rs 45.
Interestingly, as the big IPO draws to a close on Monday, the gray market premium (GMP) in the unofficial market for the stock has evaporated. At the start of the IPO on May 4, GMP was at Rs 60-65 per share, on the second day peaked at Rs 80. However, by Monday afternoon, GMP was as low as Rs 5 and, by evening, it was gone. The GMP for any IPO is an indicator of how much premium a stock can get when it lists. LIC is expected to be listed on May 17.
During the press conference after the issue, Tuhin Kanta Pandey, secretary of the Dipam government divestment division responsible for bringing the LIC to the public, described the offering as an ‘Atmanirbhar’ issue as investors in the countries, especially Indian financial institutions, that have seen it through. The issue opened on May 4 and, unlike other offers in the past, investors can bid in the IPO on all alternate days – including Saturday and Sunday – as the government has made special arrangements to quench the usual last-day rush seen in most premium offers.
According to the above data BSE, the share for LIC policyholders is registered 6.1 times, for qualified employees 4.4 times, for retail investors almost 2 times, for HNIs 2.9 times and for retail investors. buy organization 2.8 times. The IPO received an auction of nearly 48 crore shares compared to the 16.2 crore offered for sale. The day before the IPO was open to all investors, the government placed LIC shares worth around Rs 5,600 crore with the participation of local and foreign investors. This is the first divestment offer in the history of Indian capital markets with the participation of anchor investors.
Through this largest IPO in India, the government divested 3.5% of its equity in the life insurance sector. Under the offer’s pricing policy, LIC policyholders will get a discount of Rs 60 per share on the final price, while retail investors get Rs 45.
Interestingly, as the big IPO draws to a close on Monday, the gray market premium (GMP) in the unofficial market for the stock has evaporated. At the start of the IPO on May 4, GMP was at Rs 60-65 per share, on the second day peaked at Rs 80. However, by Monday afternoon, GMP was as low as Rs 5 and, by evening, it was gone. The GMP for any IPO is an indicator of how much premium a stock can get when it lists. LIC is expected to be listed on May 17.
