Retail bidders get at least 15 shares of LIC

Equity shares of Life Insurance Corporation of India, bids for which closed on May 9, have been processed and allotted to bidders and refunds of excess amounts have also been made.

The shares are expected to be listed on Tuesday, May 17.

Those who applied for the minimum lot of 15 shares in the retail individual investor category received a full allotment of 15 shares, and proportional allotments were made for higher bid amounts, with those applying for maximum

210 shares getting allotment of 78 shares.

In the LIC employees category those applied for the maximum number of

210 shares received allotment of 72 shares.

In the policy-holders category too, those who applied for minimum 15 shares got full allotment of 15 shares and thereafter proportional allotments were made; an applicant who applied for

150 shares in this category got allotment of 35 shares.

Due to aggressive bidding by policyholders, allotments were lower to each applicant. The policyholders category was subscribed 6.12 times while the overall LIC IPO was subscribed 2.95 times.

The remaining amount has been refunded to the respective bank account.

The government has meanwhile fixed the issue price of LIC shares at Rs

949 apiece, at the upper end of the IPO price band. However, LIC policyholders and retail investors have been given the shares at discounted prices of Rs 889 and Rs

904 a piece, respectively. The retail investors and eligible employees of LIC were offered a discount of Rs 45 per equity share over the issue price, while policyholders got a discount of Rs 60 per share.

As per the prospectus filed by LIC on May 12, the offer price of the share sale has been fixed at Rs

949 per equity share.

The shares were allocated to bidders on May 12. The government sold over

22.13 crore shares or 3.5 per cent stake in LIC through the IPO at a price band of Rs 902-949 a share.

The share sale fetched the government around Rs 20,557 crore.