LIC IPO | Offer subscribed 1.38 times on day 3, investors pour in Rs 20,269 crore so far

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26 Aug, 2025 12:21

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The public issue of Life Insurance Corporation of India (LIC) continued to receive a healthy response from investors on May 6 - the third day of the bidding, as the offer garnered another Rs 5,000 crore worth of bids. With this, investors have poured in Rs 20,269 crore into the IPO of the country's largest life insurance company in three days.

The offer has garnered bids of 22.34 crore equity shares against the offer size of 16.2 crore shares, subscribing 1.38 times on Friday.

The IPO has received more than 47.2 lakh applications from investors till day 3, as per Edelweiss Partners.

The public issue will remain open for subscription on Saturday, May 7 as well. The last day of the offer, which has a price band of Rs 902-949 per share, will be May 9.

The offer size of 16.2 crore equity shares has been reduced from 22.13 crore equity shares after the life insurance major raised Rs 5,627 crore from anchor investors on May 2.

Investors other than qualified institutional buyers and non-institutional bidders remained at the fore as their bids remained above their allotted quota.

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Policyholders, for whom there is a Rs 60 discount to the final issue price, have bought shares 4.01 times the allotted quota, which is valued at Rs 7,897 crore, while employees bid 3.06 times and retail investors 1.23 times the portion set aside for them.

The company has offered shares to its employees, and retail investors at a discount of Rs 45 per share to the final offer price. Their bids, so far, stood at Rs 437 crore and Rs 7,720 crore, respectively.

The part set aside for qualified institutional buyers was subscribed 56 percent and that of non-institutional investors 75 percent, who have so far put in bids worth Rs 2,107 crore each.

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The Government of India intends to mop up Rs 21,000 crore through its public issue by offering more than 22.13 crore equity shares by May 9. As it is an offer for sale issue, the entire proceeds will go to the government.

"We advise LIC policyholders and employees category applicants to apply for the maximum possible. We also suggest investors, especially the first-time investors to apply with a long-term perspective and not short-term," Girirajan Murugan, CEO of FundsIndia said.

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Murugan believes the valuation of the IPO is attractive to keep the issue stable. "The EV (Embedded Value) seems to be in favour of LIC compared to the existing listing players on the insurance space."

For those investors who are worried that LIC may lose market share to private players, Murugan thinks that LIC has a distribution advantage, increasing the sales mix of direct and corporate channels, and steady swing to a high margin that could be growth drivers for LIC going ahead. Hence, he has a subscribe rating on the issue.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.