The government has sold more than 22.13 crore shares or 3.5 percent stake in LIC through the IPO of the country's biggest Life Insurance Corporation (LIC). The public authority has about Rs 20,557 crore from the offer deal. Prior, the organization has fixed the issue cost of the IPO (introductory public issue) at Rs 949.
Examiners have a blended view on the posting of LIC IPO shares. Some expect a 10 percent premium posting, while others propose accepting an approach LIC shares after the financial exchange opens. This will decrease the gamble in speculation.
Offer of Rs 60 Off for each offer to policyholders
Policyholders and retail financial backers have gotten shares at Rs 889 and Rs 904 individually. That is, policyholders have a rebate of Rs 60 on an offer and Rs 45 for retail financial backers. LIC offers will be recorded in the market on May 17.
Investors applied by May 9
The IPO opened on May 4. Financial backers applied by May 9. The offers were designated to the bidders on May 12. The country's greatest IPO had shut with right multiple times the membership. Retail and institutional purchasers got it. Nonetheless, unfamiliar financial backers didn't show a lot of excitement.
Biggest IPO ever
LIC Rs 20,557 crore
Paytm Rs 18,300 crore
Coal India Rs 15,500 crore
Reliance Power - Rs 11,700 crore
Strategy on listing
Analysts at Axis Securities said volatility in the market could impact LIC's listing day performance. They expect LIC to start with a discount and are unlikely to book any listing benefit to investors. However, due to the discounts offered to policyholders and retail investors, they can make a marginal profit on listing.
