LIC IPO: Bids to be accepted tomorrow as well, ASBA-designated banks to stay open

The ongoing initial public offering of Life Insurance Corporation of India (LIC) will remain open for subscription even on Sunday, according to a notification from the National Stock Exchange.

"The Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday)," the notification added. "The matter has been examined and it has been decided that banks may keep all their ASBA designated branches open on May 8, 2022 (Sunday) for the above purpose."

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Earlier, exchanges informed that the issue will be open on Saturday also. So far for the second day, the LIC IPO has been subscribed 90 percent,  with policyholders subscribed 2.75 times. The retail portion has been subscribed 83 percent, QIB portion 34 percent while NII subscription stood at 37 percent.

The country's biggest IPO, which kicked off on May 4 will open until May 9, NSE circular said. The government will sell around 221.4 million shares of LIC, and plans to raise around Rs 21,000 crore from the listing.

The LIC anchor book closed on May 2 with 59.2 million shares on offer, with 42.1 million units kept for domestic mutual funds. Around 99 mutual funds invested Rs 4,001 crore, buying the shares at Rs 949 apiece on a price band of Rs 902-949.

Foreign portfolio investors (FPIs), pension funds, corporates and other insurers also participated in the anchor investment.

LIC has reserved 10 percent of the issue size for policyholders and 5 percent for employees. The IPO will have Rs 60 per share discount for its policyholders. The firm has reserved up to 35 percent of its total IPO size for retail investors.

LIC will become the country's fifth most-valued listed firm, with a market cap of over Rs 6 trillion, according to calculations by Moneycontrol. Globally, it will rank 186th in terms of market cap.