LIC IPO subscribed fully on second day
Insurance behemoth Life Insurance Corporation of India’s `21,000-crore initial public offering (IPO) has been fully subscribed at the close of the second day’s bidding as per the update provided by the stock exchanges.
The mega IPO got subscribed 103 per cent at 7 pm with huge demand coming from policyholders, employees and retail individual investors.
The rush from policyholders and employees to get a pie of the IPO continued on the second day. As a result of this unprecedented rush, the retail book was subscribed 93 per cent at the close of the second day’s bidding.
As per an update from the stock exchange released at 7 pm, the qualified institutional buyer’s quota got subscribed 40 per cent, non-institutional or high net worth investors quota got 47 per cent and retail individual investors 93 per cent. The shares reserved for employees got subscribed 221 per cent, and shares reserved for policyholders got subscribed 311 per cent.
In order to facilitate bidding
for the LIC IPO, all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications will be kept open to the public on Saturday, May 7 as well as Sunday, May 8, 2022, as per RBI/Government direction given to banks.
RBI vide its circular dated May 4, recommended all bank branches designated to handle ASBA applications remain open to the public on Sunday, May 8, 2022.
“The same will reflect on the exchanges, and bids will be accepted on Saturday as well as Sunday now between 10 am to 7 pm,” sources close to merchant bankers handling
the issue said.
The LIC IPO bidding process will close at 2 pm on Monday, May 9. The shares are expected to list on the stock exchanges on May 17.
As investors sought funds to invest in the mega LIC IPO before May 9, the secondary market fell sharply on Thursday after a bullish start, post US Fed’s 50 basis point rate hike.
The Sensex gave up all the gains after rising 898 points to 56,566.80 and closed flat at 55,702.
“Investors are pulling out funds from secondary markets and infusing in the ongoing LIC IPO,” said Shrikant Chouhan of Kotak Securities.