LIC IPO subscribed 1.03 times on second day of bidding

Mumbai: The initial public offering (IPO) of Life Insurance Corporation of India (LIC) has been subscribed 1.03 times till the second day of bidding on Thursday.

Policyholders and employees, who are offered discounts, are driving the subscriptions. The policyholders' portion has been subscribed 3.11 times. The employees' portion has been subscribed 2.21 times. The country's largest IPO opened for subscription on Wednesday and will close on May 9.

LIC has set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. Policyholders are offered a discount of Rs 60 per equity share, while retail investors and employees are offered a discount of Rs 45 on each share.

The IPO is a pure offer for sale. Out of the 22.13 crore shares offered for sale, around 5.93 crore shares have been reserved for anchor investor portion. Employee reservation portion is at 15.8 lakh while policyholder reservation is at 2.21 crore.

Retail investors have subscribed 93 per cent of the shares reserved.

However, there has been a muted response in the non-institutional category. Non-institutional category that consist of corporates, individuals, and others has witnessed less than 50 per cent subscription so far.