Mumbai, May 5 (Agency) The initial public offer of insurance behemoth Life Insurance Corporation (LIC) was fully subscribed on the second day of bidding on Thursday. The issue, which opened yesterday, attracted bids for 16.24 crore equity shares against the size of 16.20 crore shares. The retail individual investors’ portion was booked 0.91 times, while the non-institutional investors’ category was subscribed 0.46 times.
Employee reserved and policyholder reserved portions were oversubscribed at 2.14 times and 3.02 times, respectively. The public issue, which has a price band of Rs 902-949 a share, will conclude on May 9 and the stock would get listed at both the exchanges – BSE and NSE – on May 17. The issue comes with a discount of Rs 60 for policyholders and Rs 45 for retail and employees. The government hopes to raise Rs 21,000 crore by diluting a 3.5 per cent stake in LIC. “The valuation of the IPO is attractive to keep the issue stable. The embeded value seems to be in favour of LIC compared to the existing listing players on the insurance space,” Girirajan Murugan, CEO, FundsIndia said.