LIC IPO: Since the IPO is entirely an OFS, the entire net proceeds will be paid to the President of India (central government) and the life insurer will not receive any proceeds of the offer, according to the information in the red herring prospectus (RHP) of LIC. The shares will be listed on both BSE and NSE.
LIC is the country’s oldest and largest life insurance firm. It was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. LIC now manages around Rs 40 lakh crore assets and is the fifth-largest life insurer globally and the largest asset manager in the country.
At the end of the first day of subscription, the issue was subscribed around 67 per cent (0.67 times). The segment for policyholders and employees got oversubscribed 1.99 times and 1.17 times respectively. Apart from these two segments, Qualified institutional buyers (QIBs) quota was subscribed 0.33 times, non institutional investors segment was subscribed 0.27 times and the retail portion was subscribed 0.60 times.
