LIC IPO Sees Strong Participation From Anchor Investors; Key Things To Know

| Updated: May 3, 2022 11:52 am

The anchor investor portion of Life Insurance Corporation of India’s (LIC) initial public offering (IPO) was fully subscribed on May 2, according to a stock exchange disclosure from the company. According to the filing, domestic mutual funds (MFs) accounted for more than 71% of the anchor book portion.

In total, the state-owned insurance company issued nearly 59.3 million shares at Rs 949 each to 123 investors.

Government of Singapore, Government Pension Fund Global, BNP Investments LLC, Monetary Authority of Singapore, Societe Generale, Invesco India, and Saint Capital Fund were among the major investors in the anchor book.

Domestic investors showed strong interest in LIC, including SBI Mutual Fund, ICICI Prudential, SBI Life Insurance, Aditya Birla Sun Life, Axis Mutual Fund, HDFC Trustee, Nippon Life, Kotak Mahindra Life Insurance, L&T Mutual Fund, Tata Investment Corporation, UTI Mutual Fund, Sundaram Mutual Fund, IDFC MF, and Bajaj Allianz General Insurance.

The price range for the LIC IPO is Rs 902 to Rs 949 per equity share. However, the LIC IPO for policyholders is expected to have a discount of Rs 60 per share, according to the company’s regulatory filing. As a result, at the upper end of the price band, LIC policyholders can invest in the LIC IPO for as little as Rs 889 per share. LIC policyholders can place a maximum bid of Rs 2 lakh for the issue, net of the policyholder reservation quota discount.

While the LIC has set a maximum bidding limit of Rs 2 lakh for investors, it is important to note that this limit applies to each category.

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