Day 5 updates for the LIC IPO subscription: IPO has been booked 1.73 times thus far; retail oversubs

On Sunday, the fifth day of subscriptions, the Rs 20,557 crore LIC IPO remained open. The largest life insurance business in the nation, Life Insurance Corporation of India, has had its initial public offering oversubscribed by 1.73 times, receiving bids for 28.02 crore equity shares vs the offered size of 16.21 crore equity shares.

LIC IPO Subscription Update as of 2:00 PM on Day 5:

- Credentialed institutional purchasers (QIBs) 0.7 subscriptions

1.19 times as many non-institutional investors subscribed.

Investors in retail (RIIs) subscribed 1.52 times.

- Employee subscriptions increased by 3.68.

Policyholders made 4.85 subscriptions.

- Total number of subscribers: 1.73

To guarantee a seamless banking system during the subscription period, the Reserve Bank of India has urged all bank branches designated for applications supported by blocked accounts (ASBA) to remain open on Sunday. Investors can apply for shares in a public offering through ASBA.

LIC IPO: Basic Details

The eagerly expected IPO went live on May 4 and will be available till May 9. 3.5% of the government's ownership in the massive insurance company is being sold. A total of 221,374,920 equity shares are up for grabs. For the public offering, the business has set a price range of Rs 902-949. The insurer will have a projected market capitalization of Rs. 6 lakh crore at the higher pricing range. Investors may place a bid for lots starting at 15 equity shares and going up from there.

An overall 50% of the IPO will be set aside for qualified institutional buyers, followed by a 35% retail investor portion and a final 15% non-institutional investor portion.

The insurer received Rs 5,627 crore from anchor investors on May 2 in advance of the LIC IPO. Among the foreign funds that are invested are Society Generale, the Government Pension Fund of Norway, the Government of Singapore, the Monetary Authority of Singapore, and BNP Investments. According to a report by the corporation, domestic mutual funds (MFs) received 71% of the overall allocation.

Hem Securities stated, "LIC is a trusted brand with a customer-centric business approach. It is the largest player in the rapidly expanding and underpenetrated Indian life insurance sector and the fifth largest life insurer internationally by GWP. Through an unmatched agency force and an omnichannel distribution network, it is present all throughout India."

The business, which is India's largest asset management and has a proven track record of sound financial performance and profitable expansion, was also mentioned as a potential funding source. "Therefore, we advise subscribing to the issue."

LIC IPO: Grey Market Premium

The unlisted shares of LIC are currently trading on the grey market at a premium of Rs 60 over the upper band price of Rs 949 per share, according to IPO Watch. Five percent is added to the listing gain. In other words, the price per share on the black market is Rs 1,009. Based on market sentiment, the premium for the grey market changes.

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