LIC IPO Updates: Country's biggest-ever IPO sees stellar response from policyholders, investors

Poised to be India`s biggest IPO till date, watch this space for highlights, share-price, subscription and other details of this landmark public issue.

New Delhi: The initial public offering (IPO) of the Life Insurance Corporation (LIC) opened subscription at 10 am today (May 4). It will remain open to subscription till May 9. The LIC IPO that hit the Indian capital market's, is considered to have the the potential to be India's largest IPO to date. The government plans to sell 22,13,74,920 shares in Life Insurance Corporation (LIC) to raise Rs 21,000 crore. Employees and policyholders are entitled to up to 15,81,249 and 2,21,37,492 shares, respectively.

The anchor book opened on Monday (May 2). The insurance behemoth has said that it has raised Rs 5,627 crore from anchor investors, the majority of which are domestic institutions, ahead of its big initial public offering (IPO). The insurer stated in an early morning filing to exchanges that its portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share. According to the report, 4.2 crore shares (71.12 percent) of the 5.9 crore shares allocated to AIs were distributed to 15 domestic mutual funds through 99 schemes. Aside from that, some domestic insurance companies and pension funds invested. Prominent names in this category included ICICI Prudential Life Insurance, SBI Life Insurance, Kotak Mahindra Life Insurance, PNB Metlife Insurance, SBI Pension Fund and UTI Retirement Solutions Pension Fund Scheme.

LIC would get listed and start trading on the stock exchanges on May 17. With the IPO, The government intends to sell over 22.13 crore shares in LIC at a price band of Rs 902-949 a piece. While retail investors and LIC employees are geting a discount of Rs 45 per share, LIC policy holders bidding in IPO would be given a discount of Rs 60 a share. Policyholders planning to buy LIC IPO shares can invest up to Rs 2 lakh and the limit for the retail category is also set at Rs 2 lakh. Policyholders will get a discount of Rs 60 per equity share, while retail investors and employees will get a discount of Rs 45 on each share.

Thank you for staying with us for all the buz around the LIC IPO.

04 May 2022

16:17 PM

Of the total, the policyholder portion was subscribed fully while the reserved employees' portion was subscribed 0.49 times, as per the data on stock exchanges.

16:16 PM

LIC IPO was subscribed 0.29 times till noon by investors on the first day

16:16 PM

Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) portion has received a tepid response so far.

12:41 PM

At 12.24 PM, LIC IPO was subscribed 30 percent. Policyholders was fully subscribed, employees quota saw 52% subscription and retail category was subscribed 34% of its alloted portion.   

12:15 PM

The final IPO price of LIC will be determined after the subscription closes.

11:42 AM

LIC IPO was subscribed 27 percent as of 12pm the first day of its listing today

11:41 AM

As per a National Stock Exchange notification, Life Insurance Corp India's initial public offering will remain open for subscription even on Saturday, May 7

11:06 AM

As per initial reports, the LIC IPO logged 10 percent subscription on debut. Employees policy holders booked 21 percent while retail investors clocked 15 percent. At 889 per share for LIC POLICYHOLDERS, for an allotment of 15 shares, you will pay Rs 13,335.

10:39 AM

List of other big IPOs (Company name/Size (in crore)/IPO date)

LIC /20557/4-9 May, 2022  

Paytm/18300/8-10 Nov, 2021          

Coal India/15475/18-21 Oct, 2010          

Reliance Power/11563/15-18 Jan, 2008          

General Insurance/11372/11-13 Oct, 2017          

SBI Card/10354/2-5 Mar, 2020   

10:34 AM

Equity benchmarks Sensex and Nifty turned choppy on Wednesday, ahead of the LIC IPO, tracking weakness in index heavyweights Reliance Industries, TCS and HDFC Bank amid a mixed trend in global markets.

09:59 AM

LIC public offer, the country's biggest-ever IPO, on Wednesday opened for subscription for retail and institutional investors at 10 am

09:59 AM

The rupee appreciated 8 paise to 76.40 against the US dollar in opening trade on Wednesday in anticipation of foreign fund inflows through LIC IPO. At the interbank foreign exchange, the rupee opened at 76.46 against the American dollar, then gained further ground to quote at 76.40, registering a rise of 8 paise from the last close.

08:21 AM

LIC's embedded value, which is a measure of the consolidated shareholders' value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.

08:20 AM

The government shareholding in LIC will not fall below 51%.

08:09 AM

LIC Managing Director Siddhartha Mohanty had previously said that the government's sovereign cover will continue under Section 37 of the LIC Act. 

08:09 AM

Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer's group product portfolio comprises 11 group products. 

08:04 AM

LIC was formed by merging and nationalizing as many as 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.