Insurance

LIC’s Public Offer Subscribed 1.79 Times On 5th Day Of Issue: 10 Points

LIC’s Public Offer Subscribed 1.79 Times On 5th Day Of Issue: 10 Points
Written by Arindam
LIC’s Public Offer Subscribed 1.79 Times On 5th Day Of Issue: 10 Points

LIC's Public Offer Subscribed 1.79 Times On 5th Day Of Issue: 10 Points

LIC’s IPO has been subscribed 1.74 times on fifth day of issue

The initial public offer (IPO) of Life Insurance Corporation (LIC) was subscribed 1.79 times on the fifth day of subscription on Sunday, May 8, 2022. Government plans to raise Rs 21,000 crore through the public issue and the insurance behemoth has unleashed a major awareness blitzkrieg, exhorting policy holders, employees as well as the general public to subscribe it wholeheartedly.

Let’s have a look at all developments related to the country’s biggest public offer in 10 points.

  1. The public issue was subscribed 1.59 times in the retail category, 1.24 times in the non-institutional investors category, whereas employees share was subscribed by as much as 3.79 times.

  2. The policy holders’ share was hugely subscribed by 5.03 times, the qualified institutional buyers (QIBs) share though was subscribed only 0.67 times.

  3. The IPO has been kept open for subscription today also, despite being a Sunday as the Government wants to provide maximum opportunities to investors to book the issue.

  4. The All India Bank Officers’ Confederation (AIBOC) though, has objected to opening of all Application Supported by Blocked Amount (ASBA) designated branches on Sunday.

  5. It had said in a statement that Reserve Bank of India’s (RBI) decision does not serve any purpose as most of the applications are filed digitally.

  6. The AIBOC, in a letter to RBI Governor, said, “With the closing date (of LIC IPO) being on May 9…we fail to fathom the reason for the RBI Notification for opening the Branches on Sunday (May 8).”

  7. Most of the branches are ASBA designated with rapid digitisation, the association said.

  8. Government of India will be selling 3.5 percent or 22.13 crore equity shares through offer for sale of LIC. More than Rs 5,600 crore has already been raised from anchor book on May 2.

  9. The IPO had opened for subscription on May 4 for retail and other investors and will close on May 9. 

  10. LIC Chairman M R Kumar had earlier said that the company is well capitalised.

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Arindam

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