LIC IPO closes: Share allotment on May 12, all eyes on listing day

New Delhi: After the initial public offering (IPO) of Life Insurance Corporation of India (LIC) closed on Monday, all eyes are on the listing day.

Addressing a conference at the end of the six-day subscription window today, Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said, "The LIC IPO offer opened on May 4. It closed today at 7 pm. Tremendous response from all categories of investors including policyholders and others like retail and QIB has been seen in the IPO. The LIC IPO is expected to deepen the capital markets."

Asked about low participation on foreign institutional investors (FII), Pandey said LIC IPO is an example of Atma Nirbhar Bharat. Distant remote location investors have invested. Predominantly this issue has been domestically lifted.

The DIPAM secretary said the allotment of shares to the investors will be done on May 12 and the refunds will be processed soon thereafter.

On allotment of the shares to the applicants, Pandey said, "Procedure is there will be an allotment. The entire system is well described in the prospectus. The plan is to have an allocation on May 12. The applicants who get an allotment will get the shares while the refunds processed soon for those who did not get an allotment. The stocks will be there in the Demat accounts of those before May 17."

Pandey has earlier said that the LIC IPO will be listed on the bourses on May 17 subject to regulatory approvals. The issue has been subscribed 2.95 times on the final day in what could be seen as a healthy response from the investors even though participation from the FIIs remained subdued. 47.83 crore equity shares were received against an IPO size of 16.2 crore equity shares. The policyholder bucket has been subscribed 6.11 times while the employees portion saw bidding of 4.39 times. The retail investors` bid was subscribed 1.99 times and the noninstitutional investors portion was subscribed 2.91 times.

On the timing of the IPO and the impact of the global equity carnage in the wake of the rising interest rates, Pandey said, "Lot of geopolitical conditions are impacting the market. We will not be able to comment on the market situation."