LIC IPO: Govt’s treasure chest richer by Rs 20,557 crore after diluting 3.5% stake with the mega-offer

The government has moped up Rs 20,557 crore by diluting 3.5 per cent of its stake in the LIC.

New Delhi: The Central government has moped up Rs 20,557 crore by diluting 3.5 per cent of its stake in the Life Insurance Corporation (LIC) of India with the country’s largest insurer's mega initial public offer (IPO). The company has allotted IPO shares to eligible bidders of the offer at the upper end of the price band at Rs 949 apiece. Bidders who received LIC IPO shares now must be impatiently waiting for the debut of the insurance behemoth on the public exchanges. The latest LIC IPO GMP, however, suggests a muted listing, which could even lead to a slight loss to bidders who received LIC shares in their Demat accounts. 

However, policyholders, retail investors and employees, who have been offered discounts, are likely to make listing gains. LIC had offered policyholders a discount of Rs 60 per share, meaning that such investors would have paid Rs 889 per share for LIC IPO shares. On the other hand, retail investors and employees have got LIC IPO shares at Rs 904 apiece.

LIC IPO allotment process has been completed. Eligible subscribers have received the IPO shares. The shares will reflect in the Demat accounts of eligible subscribers on Monday, according to a report by ANI. On the other hand, refunds will soon get credited into the accounts of unsuccessful bidders. Also Read: Bank Holidays in May: Bank branches to remain shut for 3 consecutive days

LIC IPO shares are expected to make a stock market debut on May 17. The initial public offering of LIC was subscribed 2.95 times. The IPO opened for public subscription on May 4 and closed on May 9, the media report added. Also Read: PAN card scams on the rise: Here's how to remain safe