Domestic investors continue to pile into Life Insurance Corp.'s initial public offering, India's biggest ever, on the final day of subscription.
The IPO was subscribed 67% on the first day and was fully bid for on the second day. The demand was led by policyholders and employees. The issue was also open over the weekend, with subscription reaching 1.79 times at close on Sunday.
The government is looking to raise as much as Rs 21,000 crore by selling a 3.5% stake in the nation's biggest life insurer.
The IPO, according to its red herring prospectus, comprises an offer for sale of 22.13 crore equity shares at Rs 902-949 apiece. Employees and retail investors will get a discount of Rs 45 apiece, while policyholders will be able to buy at Rs 60 below the issue price.
The proceeds will be paid to the government, the selling shareholder. LIC expects that the proposed listing of its equity shares will enhance its visibility and brand image.
Subscription Details: Day 6
The IPO subscribed 2.95 times as of 7 p.m. on May 9.
Institutional investors: 2.83 times.
Non-institutional investors: 2.91 times.
Retail investors: 1.99 times.
Employees: 4.39 times.
Policyholders: 6.12 times.
(Source: BSE)
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