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HomeNewsWorldAnchor book in Rs 21k cr LIC IPO gets fully subscribed

Anchor book in Rs 21k cr LIC IPO gets fully subscribed

Anchor book in Rs 21k cr LIC IPO gets completely subscribed

MUMBAI: The anchor allocation part for the maiden offer for life insurance coverage major LIC, worth about Rs 5,600 crore was completely subscribed on Monday night with the overall need for its shares for large institutional financiers much bigger than the number of shares available, sources stated. Till late in the evening the details of the allocation were not uploaded on the bourses.
LIC’s is the first divestment deal to have an anchor book. Through an anchor allotment, some select, marque investors of international and domestic prominence are allotted about 35% of the total deal a day ahead of the opening of the issue. Till now the federal government was not going to provide preferential treatment to a handful of financiers ahead of the opening the IPO to all kinds of investors.

LIC

< img alt="LIC" msid="91273705" width="600" title placeholdersrc="https://bharatsuchana.com/wp-content/uploads/2022/05/UoOHKz.gif" imgsize="23456" resizemode="4" offsetvertical="0" placeholdermsid type="thumb" src="https://static.toiimg.com/thumb/imgsize-23456,msid-91273705,width-600,resizemode-4/91273705.jpg" data-api-prerender="real" > Through this IPO, the federal government is offering 22.1 crore shares of the life insurance significant at a rate band of Rs 902-949-per-share, intending to raise about Rs 21,000 crore.
This will be the largest IPO in the history of the Indian capital market, ahead of the Rs 18,300-crore PayTM IPO that closed last November.
The problem would open on May 4 and close on May 9. Retail financiers will get a Rs 45-per-share discount on the offer price while LIC’s insurance policy holders will get a discount rate of Rs 60.
Of the about 22.13 crore LIC shares being sold by the federal government through the IPO, almost 10 crore shares are booked for institutional financiers, about 3 crore shares for non-institutional buyers (high networth investors) and about 2.2 crore shares are reserved for its policyholders.
The life insurance coverage major is anticipated to be noted on the bourses on Might 17.
Previously in February this year, finance ministry officials had informed TOI that the government was looking at a valuation of Rs 13-14 lakh crore. Nevertheless, after the start of the Russia-Ukraine war and the subsequent fall in the market, the government drastically lowered the appraisal of the business by less than half the earlier level. At the existing IPO size, LIC’s evaluation is pegged at about Rs 6 lakh crore.
LIC’s ingrained value, the most accepted valuation metric for insurer, was pegged at about Rs 5.4 lakh crore as of September 30, 2021. The appraisal was done by worldwide actuarial company Milliman Advisors.
While all the listed Indian personal life insurance coverage players are commanding an assessment of between 2.5 times to 3.5 times their ingrained value, at the IPO rate, LIC’s is 1.1 times. According to some experts this makes the IPO rate appealing.

Released at Mon, 02 May 2022 22:22:05 +0000

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