LIC Anchor Book Of Rs 5,620 Crore Fully Subscribed

The anchor investor portion of LIC's initial public offering has been subscribed fully, garnering around Rs 5,620 crore, according to an official.

The issue opened for anchor investor subscription on Monday and saw 'excellent' response, the official said, adding that the list will be uploaded to exchanges tonight.

"Anchor book is to be allocated up to the maximum allowable limit of Rs 5,620 crore. It's fully done," the official told PTI.

The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC) at a price band of Rs 902-949 a share, targeting to raise about Rs 21,000 crore. The issue would open for institutional and retail buyers from May 4 -9.

The LIC share sale would be the biggest ever amount raised through an initial public offering in the Indian stock market. The previous such high fund-raising was seen in the IPO of PayTM in 2021 at Rs 18,300 crore and Coal India in 2010 at Rs 15,200 crore.

Of the over 22.13 crore LIC shares on offer, over 9.88 crore shares are reserved for qualified institutional buyers and over 2.96 crore shares for non-institutional buyers.

Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.

While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policyholders bidding in IPO would get a discount of Rs 60 a share.

LIC would get listed and start trading on the stock exchanges on May 17.

LIC's embedded value, which is a measure of the consolidated shareholder's value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.

Based on investor feedback, the market value of government-owned LIC has been pegged at 1.1 times its embedded value or Rs 6 lakh crore.