Initial Public Offering of Life Insurance Corporation of India (LIC) was subscribed 1.79 times on Sunday on Day 5. The issue closes today after remaining open on the weekend. Except for the portion reserved for qualified institutional buyers (QIBs).
The issue was oversubscribed across all categories till May 8, showing data with the exchanges. As per the data, the investors bid for 29.08 crore shares till Sunday, against the offered size of 16.2 crore shares.
The policyholders’ portion was booked 5.04 times, the quota reserved for employees saw bidding for 3.79 times and retail investors bid 1.59 times. Similarly, the NICs portion was booked 1.24 times and the QIBs portion, which saw bidding of 67% against its quota of shares, was yet to be fully subscribed.
Applications are taken on Sunday, too
The State Bank of India (SBI) had announced on Twitter that it will keep all its branches open on Sunday, May 8 to accept applications for India’s mega largest public offer (IPO) of Life Insurance Corporation (LIC). More than 100 branches of the SBI were open.
On May 4, the Reserve Bank of India (RBI) had announced: The Government of India, to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday).”
Punjab National Bank (PNB) kept all its 10,088 branches open for the public today (Sunday), May 8. to facilitate the processing of applications for the mega LIC IPO.
State-owned LIC’s IPO is India’s biggest subscription to be offered by retail and institutional investors. LIC has fixed the price band at Rs 902-949 per equity share. Additionally, the offer places attractive discounts for eligible employees and policyholders.
LIC IPO GMP Today
However, the current weak market condition is taking a toll on the flow of primary investments in such a large IPO. Shares of the company are commanding a premium of Rs 36 in the grey market, which has come down from Rs 85 earlier.
Market observers said that LIC IPO GMP today is Rs 36, which is Rs 24 lower than yesterday’s grey market premium (GMP) of Rs 60.
They said that after scaling up to Rs 92 levels, LIC IPO GMP has been continuously decreasing because of the weak stock market sentiments.
They said that secondary market across the world is facing a sell-off and the Indian stock market is not immune to it. So, the grey market was bound to get affected by the global market sentiments.
As per the market observers, LIC IPO GMP today is Rs 36, which means the grey market is expecting LIC IPO listing around Rs 985 levels ( Rs 949 + Rs 36). It is around 3 per cent higher than the LIC IPO price band of Rs 902 to Rs 949 per equity share.