LIC IPO Subscription Day 2 LIVE: India’s mega issue opened for subscription on Day 2. At the end of Day 1, the issue had garnered 67 per cent bids, with employee and policyholder portions oversubscribed. Most analysts are bullish on the issue while some have raised concerns about the impact of RBI’s rate hike on the issue.
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DAY 2 FINAL STATS
Public listing of the Life Insurance Corp of India (LIC) will improve transparency in its operations, encourage better underwriting and risk management leading to a better credit profile, rating agency Moody’s said in a note.
LIC IPO sails through
IPO Status Check
- QIBs: 40%
- Retail investors: 87%
- Policyholders: 2.90X
- Total: 97%
LIC bidding to be open on Sunday
Subscription status check: Issue subscribed 90%
LIC IPO subscription status check: Issue subscribed 87%
- QIB: 34%
- NIH: 35%
- Retail: 80%
- Employee: 1.82x
- Policyholder: 2.64x
LIC IPO subscription status: Issue receives 85% bids as of 1.30 pm on Day 2
LIC IPO’s retail portion subscribed 75% so far on Day 2
The retail portion for LIC IPO received 5,17,60,965 bids so far on Day 2 of the book-building process against 6,91,79,663 shares on offer. Overall, the IPO was subscribed 81% as of 12.25 pm.
Day 2 | LIC IPO subscribed nearly 80%
LIC IPO receives bids for 12,76,22,295 shares against 16,20,78,067 share on offer
LIC IPO subscription status check: Issue subscribed 75%
- QIB: 34%
- NIH: 29%
- Retail: 69%
- Employee: 1.46x
- Policyholder: 2.26x
LIC IPO subscription status: Issue receives 72% bids so far on Day 2
FYI: LIC IPO to stay open on Saturday
Life Insurance Corp. of India’s initial public offering will take subscriptions even on Saturday, an unusual move aimed at attracting investors including retail buyers for the nation’s biggest share sale. The IPO, which kicked off on Wednesday, will remain open until May 9, including on Saturday, a notification on the National Stock Exchange of India Ltd. said.
I just feel a little sorry for the government because the LIC IPO is on. Nothing could have been worse for the government than this. First of all it came out too late and now we have this. So I just cannot help thinking about LIC, the government disinvestment and how things could have been different if only the RBI had woken up in time.
– Mythili Bhusnurmath
“Though RBI’s sudden decision to hike the interest rate has come as a surprise to the market, it will not have much of an impact on the subscription of LIC IPOs as institutions are not worried about the rise in the cost of funds,” said Sudip Bandyopadhyay, group chairman, Inditrade Capital. “The government has kept valuations very attractive.”
Analysts said LIC’s IPO valuations are at a discount to its listed private peers. “RBI’s rate hike could impact the smaller public issues, but a large one with good fundamentals will sail through,” said Sanjeev Hota, head of research, Sharekhan.
LIC IPO subscribed 67% at the end of Day 1
As of Wednesday, investors made bids for 10,86,91,770 equity shares or 67 per cent compared to the 16,20,78,067 equity shares offered for subscription. Among the five categories, employees and policyholders quota was fully subscribed. Retail quota saw 60 per cent subscription while non-institutional investor quota was subscribed 27 per cent. QIB quota saw 33 per cent bids so far.