LIC IPO- DAY 3 LIC IPO DAY 3: Policyholder oversubscribe 3.84 times, staff 2.92 times, retail 1.18, QII 55%, and NII 66%
Mumbai/IBNS: The initial public offering (IPO) of Life Insurance Corporation (LIC), India's largest life insurance enterprise, has been oversubscribed 1.31 times, receiving bids for 21.3 crore shares against the offer of 16.2 crore shares, Moneycontrol reported.
The portion meant for policyholders has been oversubscribed by 3.84 times, staff by 2.92 times, and retail investors by 1.18 times.
The Qualified Institutional Buyers (QIB) have subscribed 55 percent of their allotted quota and Non-Institutional Bidders (NII) 66 percent of their portion.
On day two of LIC's IPO, the policyholders and employees oversubscribed 3.11 times and 2.22 times of their allotted quota, retail investors purchased 93 percent from their reserved portion, QII and NII subscribed 40 percent and 47 percent of their part respectively, Moneycontrol reported.
On the first day of the major Indian insurer's IPO, the staff and policyholders quota was entirely subscribed, retail got 60 percent subscribed, NII quota was 27 percent subscribed and QIB witnessed 33 percent bids, according to media reports.
The Government of India (GOI) expects to raise 21,000 crores on the upper price band by selling 3.5 percent of its stake in LIC.
Earlier, GOI intended to offload five percent of its stake in LIC through the IPO, as per a Draft Red Herring Prospectus (DRHP) filed with the market regulator Security and Exchange Board of India (SEBI), according to multiple media reports.
LIC's IPO is crucial for GOI to meet its asset sale target which has been reduced to Rs 65,000 cr from the last year's target of Rs 75,000 cr, reported Mint.
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