At the upper price band, investors will have to spend Rs 14,235 to get a single lot of LIC. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
New Delhi: India’s biggest-ever Initial Public Offering (IPO) by the insurance giant Life Insurance Corporation of India (LIC) on Wednesday opened for subscription. The subscriptions will go on till May 9, 2022. The price band has been set at Rs 902-Rs 949 per share. Investors can bid for shares in a lot size of 15 shares, and then in multiples thereof.
At the upper price band, investors will have to spend Rs 14,235 to get a single lot of LIC. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
On April 27, LIC had informed that the government has reserved 10% of the issue size for policyholders and said they will get a discount of Rs 60 while employees and retail investors will get a discount of Rs 45.
At 11:30 am on Wednesday, the issue was subscribed 0.18 times, showed the NSE data. The policyholders segment was subscribed 0.48 times while the employees portion was subscribed 0.38 times. The qualified institutional buyers (QIBs) was subscribed 0.00 times, the non-institutional investors was subscribed 0.04 times and the retail segment was subscribed 0.24 times.
In its Draft Red Herring Prospectus (DHRP), filed with market regulator Securities and Exchange Board of India (Sebi), LIC has said that policyholders will need to check certain criteria to be eligible to apply under the quota. First of all, all policyholders need to open a demat account to apply for the IPO.
Next, LIC policyholders whose PAN cards are linked to the insurance policy as of February 28, 2022, will be eligible to apply for the LIC IPO under the policyholder quota. All policies that have not exited LIC records due to maturity, surrender, or the policyholder’s death are eligible for reservation under the quota, LIC said.
