₹20,557-cr IPO got overwhelming response from investors

Prime Minister Narendra Modi-led central government had raised ₹20,557.23 crore by selling 3.5% shares in LIC of India in the country’s largest-ever IPO. The highly anticipated IPO of LIC of India received overwhelming response from investors, with the issue oversubscribing 2.95 times. The policyholder portion of the IPO has been subscribed 6.11 times, while the portion reserved for employees was subscribed 4.39 times. Retail investors bid 1.99 times the allocated bucket, and non-institutional investors’ portion was subscribed 2.91 times. The issue raised a ₹43,933 crore demand against the intended offer size of ₹21,000 crore.

LIC had reserved shares for its policyholder and the employees. Of the 22.13 crore issue size, over 2.21 crore shares and 15.81 lakh shares are reserved for the policyholder and the employees. Besides, 9.88 crore shares are reserved for qualified institutional buyers and over 2.96 crore shares for non-institutional buyers. LIC employees and retail investors were offered a discount of ₹45 per share, while LIC policyholders were given a rebate of ₹60 apiece.

Ahead of the IPO, LIC of India raised over ₹5,000 crore through anchor investors, which received strong participation from domestic mutual funds as well as foreign fund houses. The insurer allotted around 59.3 million shares to 123 anchor investors at Rs 949 apiece, of which more than 70% comprises of domestic mutual funds such as SBI Mutual Fund, SBI Life Insurance, ICICI Prudential, Nippon Life, Kotak Mahindra Life Insurance, L&T Mutual Fund, Aditya Birla Sun Life, Axis Mutual Fund, HDFC Trustee, Tata Investment Corporation, UTI Mutual Fund, Sundaram Mutual Fund. The key foreign investors which participated in the anchor book included the Government of Singapore, Government Pension Fund Global, BNP Investments LLC, Monetary Authority of Singapore, Societe Generale, Invesco India, and Saint Capital Fund.

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