The largest-ever initial public offering (IPO) in India, by Life Insurance Corporation of India (LIC), has completely subscribed in all categories, and the focus now switches to the May 17 stock exchange listing.
Here Is Your 10-Point Guide To The Story:
- LIC’s IPO attracted an extraordinary reaction, with the issue approximately three times oversubscribed, spearheaded by over 250 million policyholders’ bids for a little more than six times the shares on offer.
- The public offer was oversubscribed in every category. Policyholders were booked 6.11 times, employees were booked 4.39 times, retail investors were booked 1.99 times, non-institutional investors were booked 2.91 times, and qualified institutional buyers (QIB) were booked 2.83 times.
- According to market data, the IPO was booked 2.95 times as of 7:00 p.m. on Monday, with investors bidding for 47.76 crore shares vs 16.20 crore on offer. The government will raise a record 21,000 crore via the sale of a 3.5 percent interest in the country’s leading insurer, more than a third of its initial objective.
- “The IPO had a tremendous reaction from all investors, including policyholders and others such as retail and QIB. The LIC IPO is likely to increase capital market liquidity “Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), said at a press conference on Monday at the end of the six-day subscription window.
- “It demonstrates that the capacity of the Indian capital market has significantly improved, as well as our ability to manage our own capital market without relying on foreign investors… It is true that domestic institutions have primarily addressed this issue “he stated
- Mr Pandey said the LIC IPO is an example of Atma Nirbhar Bharat when asked about the low involvement of foreign institutional investors (FII). Investors from afar have made investments. This problem has largely been resolved domestically. While foreign investor demand was low, they rushed to bid on the big IPO at the last minute.
- The DIPAM secretary stated that the distribution of shares to investors will take place on May 12 and that reimbursements will follow soon after. Mr Pandey previously stated that the LIC IPO would be listed on the bourses on May 17, pending regulatory approvals. Decisions would be made in the best interests of policyholders. On the other hand, he noted, the interests of shareholders would be balanced.
- “Let’s hope that everything goes smoothly on the listing day,” Mr Pandey said when asked about the expected market reaction on the day of the IPO, given the recent collapse.
- LIC shares were selling at a premium of less than 40 rupees in the grey market ahead of the listing, according to Reuters, down from around 100 rupees previously.
- Employees and retail investors received a 45-rupee discount, while policyholders received a 60-rupee discount. The issue’s price range was established between 902 and 949 per share.
Aryan Jakhar works as an Editor-in-Chief at The Shining Media. Also, he is an editor at YouthPolitician (digital media situated in Taiwan). He writes his opinions on social issues at YouthKiAwaaz and also on his blogger website.
