LIC IPO priced at top end of indicated range: Report

Life Insurance Corporation (LIC) has priced its IPO in the upper part of the specified range, to 949, according to a Bloomberg report. Trading in LIC shares on the stock exchanges will begin on Tuesday, May 17, 2022.

The government raised over 20,500 crore ($ 2.7 billion) as the largest share sale priced at the top of the specified range after strong demand from local investors.

LIC’s mega-publishing offer closed with almost a three-time subscription at the end of the six-day bidding period, predominantly by domestic individuals and institutional buyers, but foreign investors’ participation remained subdued.

Private investors received a discount 45 on the offer price, while the policyholders received one 60. The anchor share of LIC IPO was subscribed to more than 70% by domestic institutions, including funds, insurance companies.

The government has diluted 3.5% of the shares in the insurance house through the offer for sale (OFS). The government reduced the issue size to 3.5% from 5% previously decided due to prevailing choppy market conditions.

Even after the reduced size of approx 20,557 crore, the share sale is the largest ever in the country. LIC was formed through the merger and nationalization of 245 private life insurance companies on September 1, 1956, with a start-up capital of 5 million.

In December 2021, LIC had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of start-up premiums, 71.8% in terms of the number of individual insurances and 88.8% in terms of the number of insurances. group policies issued.

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