The public offering of India’s largest life insurance provider, LIC, was subscribed 2.93 times on 9th May 2022, the final bidding day. The company acquired bids for 47,50,61,265 equity shares against an issue size of 16,20,78,067 shares.
LIC is a government-owned company offering insurance products as well as non-participating products, which include ULIPs, term insurance plans, health insurance policies and more. It currently operates through 2048 branches spread across India and abroad.
Through this IPO, the Government of India plans to offload a 3.5% stake in the company and generate a sum of Rs. 21,000 crore. The LIC IPO is entirely an OFS and does not consist of fresh share issuance. Further, the price band of this public offer is fixed at Rs. 902 to Rs. 949 per share.
Here are all the details regarding the performance of LIC IPO across varied investor segments during the final bidding day.
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LIC IPO Day 6 Performance – Final Verdict
The below pointers detail the performance of LIC IPO over various segments of investors during the final day of bidding:
- Qualified Institutional Buyers (QIBs) sought bids for 11,20,68,960 shares against 3,95,31,236 reserved shares.
- Non-Institutional Investors (NIIs) placed bids for 8,61,92,385 shares, where 2,96,48,427 shares were allotted in total.
- Retail Individual Investors (RIIs) put in bids for 13,61,06,340 equity shares out of a total allotment of 6,91,79,663 shares.
Here is a tabular representation of the number of times each investor category placed bids for this public issue:
| QIB | NII | RII | Total |
| 2.83 times | 2.91 times | 1.97 times | 2.93 times |
Out of the overall issue size, LIC reserved around 50% of shares for QIBs and 35% shares for RIIs. Further, 15% of the issue size was reserved for NIIs.
A Glimpse at LIC’s Anchor Investment
Life Insurance Corporation of India reserved around 60% out of the QIBs portion for anchor investors on a discretionary basis. The company generated a whopping amount of around Rs. 5,600 crores from 123 anchor investors ahead of its public issue.
The company mentioned that its IPO’s anchor investor part was fully subscribed as of 2nd May 2022.
Moreover, around 71% of the allotted issue size was subscribed by domestic mutual funds at the upper price band.
Overall, the company reserved 59.30 million shares for anchor investors.
The following table represents the top 19 anchor investors who put in a major contribution to LIC’s anchor issue:
| Anchor investor | % portion | Allocated value | No. of shares |
| BNP Investments LLC | 8 | Rs. 450 crores | 4,741,830 |
| SBI Equity Hybrid Fund | 9.22 | Rs. 519 crores | 5,468,910 |
| ICICI Pru Value Discovery Fund | 3.91 | Rs. 220 crores | 2,318,220 |
| Government Pension Fund (Norway) | 4 | Rs. 225 crores | 2,370,915
|
| SBI Balanced Advantage Fund | 3.64 | Rs. 205 crores | 2,160,165 |
| SBI Blue Chip Fund | 3.38 | Rs. 190 crores | 2,002,110 |
| HFDC Balanced Advantage Fund | 3.55 | Rs. 200 crores | 2,107,485 |
| ICICI Pru Blue Chip Fund | 2.13 | Rs. 120 crores | 1,264,500 |
| Government of Singapore | 2.70 | Rs. 151.67 cores | 1,598,220 |
| HDFC Hybrid Equity Fund | 2.13 | Rs. 120 crores | 1,264,485 |
| ICICI Pru Balanced Advantage Fund | 2.13 | Rs. 120 crores | 1,264,500 |
| ICICI Pru Equity and Debt Fund | 1.78 | Rs. 100 crores | 1,053,735 |
| HDFC Flexi Cap Fund | 1.78 | Rs. 100 crores | 1,053,750 |
| HCL Corporation Private Limited | 1.78 | Rs. 100 crores | 1,053,735 |
| ICICI Pru Life Insurance Company | 1.78 | Rs. 100 crores | 1,053,735 |
| SBI Life Insurance Company Ltd | 1.78 | Rs. 100 crores | 1,053,735 |
| SBI Flexi Cap Fund | 1.65 | Rs. 93 crores | 979,980 |
| HDFC Top 100 Fund | 1.78 | Rs. 100 crores | 1,053,735 |
| Aditya Birla SL Frontline Equity Fund | 1.65 | Rs. 93 crores | 975,930
|
The above-mentioned anchor investors accounted for around 58.77% of the entire allocation.
LIC IPO Day 1 – Day 5 Highlights
Here is a rundown of LIC IPO’s subscription status during the initial 5 days:
| Bidding Day | QIB | NII | RII | Total |
| Day 1 | 0.33 times | 0.27 times | 0.60 times | 0.67 times |
| Day 2 | 0.40 times | 0.47 times | 0.93 times | 1.03 times |
| Day 3 | 0.56 times | 0.76 times | 1.23 times | 1.38 times |
| Day 4 | 0.67 times | 1.08 times | 1.46 times | 1.66 times |
| Day 5 | 0.67 times | 1.24 times | 1.59 times | 1.79 times |
Bottom Line
The public issue of LIC attracted substantial interest amongst retail investors, who were also the top bidders in this IPO. Interestingly, the company maintained its charm despite the recent sell-offs, inflationary concerns and a global rate hike.
Frequently Asked Questions
Who is the registrar of LIC IPO?
KFin Technologies Limited is the registrar of this IPO.
When was LIC established?
LIC was formed in 1956 by the Government of India with a capital contribution of around Rs. 5 crores.
What is the LIC IPO listing date?
LIC IPO will list on the stock exchanges on 17th May 2022.
When will investors receive LIC IPO shares to their Demat accounts?
LIC’s credit of share to Demat account will take place on 16 May 2022.
What advantages did LIC policyholders get regarding its IPO?
LIC reserved 10% of the total issue size for its policyholders. Additionally, policyholders also got a discount of Rs. 60 per share on the final offer price.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
