The Life Insurance Corporation (LIC) of India has raised over Rs 5,600 crore from 123 anchor investors ahead of its much-awaited initial public offering (IPO). In a stock exchange filing, the country's largest insurer said the anchor investor part of the IPO was fully subscribed on May 2. A big chunk of it, more than 71 percent, was subscribed by domestic mutual funds at a rate of Rs 949 for each share, the upper end of the price band for the IPO. LIC allotted about 59.30 million shares to the anchor investors.
The Life Insurance Corporation (LIC) of India has raised over Rs 5,600 crore from 123 anchor investors ahead of its much-awaited initial public offering (IPO). In a stock exchange filing, the country's largest insurer said the anchor investor part of the IPO was fully subscribed on May 2. A big chunk of it, more than 71 percent, was subscribed by domestic mutual funds at a rate of Rs 949 for each share, the upper end of the price band for the IPO. LIC allotted about 59.30 million shares to the anchor investors.
The Life Insurance Corporation (LIC) of India has raised over Rs 5,600 crore from 123 anchor investors ahead of its much-awaited initial public offering (IPO). In a stock exchange filing, the country's largest insurer said the anchor investor part of the IPO was fully subscribed on May 2. A big chunk of it, more than 71 percent, was subscribed by domestic mutual funds at a rate of Rs 949 for each share, the upper end of the price band for the IPO. LIC allotted about 59.30 million shares to the anchor investors.
Anchor investors are institutional investors that are allotted shares before an IPO opens but they have to commit to holding their shares for a certain period after listing. The major anchor investors that were allotted LIC shares included the Government of Singapore, Government Pension Fund Global, BNP Investments LLC, Monetary Authority of Singapore, and Saint Capital Fund.
Domestic investors included SBI Mutual Fund, ICICI Prudential, SBI Life Insurance, Aditya Birla Sun Life, Axis Mutual Fund, HDFC Trustee, Nippon Life, Kotak Mahindra Life Insurance. L&T Mutual Fund, Tata Investment Corporation, UTI Mutual Fund, Sundaram Mutual Fund, IDFC MF, and Bajaj Allianz General Insurance were other domestic investors. LIC said in its BSE filing on Tuesday that 42.17 million shares out of the total were allocated to 15 domestic mutual funds through 99 schemes.
The IPO, set to be India's biggest, opens for bidding on May 4 and closes on May 9.
The government aims to raise Rs 21,000 crore by diluting its 3.5 percent stake in LIC. It is offering a little over 221 million shares. Of them, 98.8 million shares have been reserved for qualified institutional buyers and another 29.6 million for non-institutional buyers. LIC has reserved about 1.58 million shares for its employees and 22.1 million shares for policyholders.
LIC is offering a discount of Rs 45 per share to its retail investors and employees and a Rs 60 discount per share to its policyholders. The insurer has set a price band of Rs 902-949 per share.
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