Life Insurance Corporation of India’s (LIC), initial public offering (IPO), anchor investor section was oversubscribed Monday, the first day of subscription.
The IPO of the state-owned LIC was opened Monday for anchor investors and will be open for the general public from May 4 through May 9.
LIC plans to raise Rs 5,630 crore via anchor investors, out of the Rs 21,000 crore IPO. For anchor investors, 59.3 millions shares have been reserved by the company.
Sources claim that the volume of the anchor book is twice as large on the first day, if not exceeded by the bids received from either the anchor investors or large investors.
LIC has determined a price range of Rs 902 – Rs 949 for its Initial Public Offer (IPO). The discount for policyholders is Rs 60, while employees and retail investors will receive Rs 45 per share.
The IPO is a direct offer to sell. About 5.93 million shares of the 22.13 billion shares available for sale have been reserved by anchor investors. Policyholder reservation is at 22.14million and the employee reservation portion at 1.58 million.