LIC fixes IPO price at Rs 949/share

TNN

Mumbai: Ahead of its listing on Tuesday, life insurance major

LIC

fixed the IPO price at Rs 949-per-share. The Rs 21,000-crore issue, the largest in India, closed on Monday with an overall subscription at nearly three times.

Most investors in the IPO also got their allotments by Friday evening. According to people who got allotments, the pattern that emerged showed that those policyholders who had applied for at least 30 shares, got 15 of them. Thereafter, for every 15 shares bid in the IPO, they got three shares.

In case of retail investors the allotment was in the proportion of about five to six shares for every 15 shares bid, some of those who got allotments told TOI.

With the final price fixed at Rs 949, policyholders will get the shares at Rs 889 each, a Rs 60-per-share discount, while retail investors will get the shares at Rs 904 each, a Rs 45 discount. The company is yet to announce the basis of allotment.

Through the IPO, the government raised a little over Rs 21,000 crore of which about Rs 5,600 crore was raised from a clutch of investors, called

anchor investors

, just a day before the IPO opened.

According to data on the BSE on the day the IPO had closed, the portion reserved for LIC’s policyholders was subscribed 6.1 times, for eligible employees it was subscribed 4.4 times, for retail investors it was subscribed nearly 2 times, for HNIs it was subscribed 2.9 times and for the institutional buyers it was subscribed 2.8 times.

The IPO received bids for nearly 48 crore shares against 16.2 crore shares which were on offer. In the grey market, however, the premium on LIC shares has vanished, indicating a weak listing for the life insurance major. Just before the IPO had opened, the shares were commanding a

grey market premium

(GMP) of Rs 60-65 each. But after the close of the IPO, the GMP almost got reduced to zero, partially because of the weak market conditions due to a combination of global and local factors, market players said.


Get real-time updates on Budget 2025 and Income Tax Slabs on Times of India. Watch the full Budget 2025 speech video.