Categories: Business

On closing day of LIC IPO, the total subscription at 2.95 times

On the final day of bidding, the insurance behemoth Life Insurance Corporation of India’s (LIC) IPO, the country’s largest ever, witnessed 2.95 times greater demand than the shares on sale, generating bids totalling Rs 43,933 crore.

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Domestic investors, mostly retail, were the primary drivers of the subscription. The IPO received 7.33 million retail investor applications, breaking the previous record of 4.8 million set by Reliance Power in 2008. Foreign portfolio investors (FPIs) were lukewarm on the issue, owing to global risk aversion caused by rising bond yields.

The policyholders’ component witnessed the highest level of participation, with bids totaling over Rs 12,000 crore. Employees’ shares were 4.4 times subscribed, while retail individual investors’ shares were two times subscribed, with bids totaling over Rs 12,450 crore.

Life Insurance Corporation of India’s (LIC)

The Life Insurance Corporation of India (LIC) is an Indian statutory insurance and investment company with its headquarters in Mumbai. It is under the control of the Indian government. The Life Insurance Corporation of India was founded on September 1, 1956, when the Indian Parliament passed the Life Insurance of India Act, which nationalised the Indian insurance business. The state-owned Life Insurance Corporation of India was formed through the merger of over 245 insurance companies and provident societies.

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