LIC IPO GMP Today, Share Allotment Date, Status, Listing Date; All you Need to Know

LIC IPO: The initial public offering of Life Insurance Corporation (LIC) of India has received a healthy response from investors as the offer has subscribed 2.95 times, receiving bids for 47.83 crore equity shares against LIC IPO size of 16.2 crore equity shares in total, as the six-day long subscription came to an end. The portion set aside for policyholders has been subscribed 6.11 times, employees bid 4.39 times the allotted quota, and retail investors 1.99 times, while the reserved portion of qualified institutional buyers has booked 2.83 times and that of non-institutional investors 2.91 times.

DIPAM Secretary Tuhin Kanta Pandey on Monday said that the much-awaited IPO of Life Insurance Corporation was a tremendous success and the issue was subscribed nearly 3 times at the close today.

“We are pleased to inform you that the IPO offer which started on the 4th of May has closed today at 7 pm and it has met with tremendous success from all categories of investors; this will eventually lead to listing of LIC and deepen the capital market,” Pandey said while addressing a press briefing in the evening today.

LIC IPO Share Allotment

The DIPAM secretary further informed that the allotment of LIC IPO will take place on May 12.

“LIC IPO subscribed 2.95 times on the final day which opened on May 4 received bids for 47.83 crore equity shares against 16.20 crore shares on the offer. Many new demat accounts opened due to LIC IPO. Allotment of LIC IPO will take place on May 12,” Pandey said.

LIC IPO GMP Today

In the grey market, LIC shares were trading at a premium of less than Rs 40, down from nearly Rs 100 earlier. A clutch of foreign investors and several domestic mutual fund houses had bid for its anchor book which had closed on May 2.

The 66-year-old company dominates India’s insurance sector, with more than 280 million policies. It was the fifth-biggest global insurer in terms of insurance premium collection in 2020, the latest year for which statistics are available.

Brokerage firms have been bullish on LIC IPO with most advising investors to subscribe to the issue. Analysts have highlighted that LIC has been priced attractively. “At the upper-priced band of Rs 949, the issue is valued at 1.1x EV (Sep ‘21) which is at a significant discount to private sector valuations,” Nirmal Bang said in a report. Geojit Financial Services said that SBI Life Insurance Company trades at a P/EVPS of 3.2x while HDFC Life Insurance Company is at 3.9x and ICICI Prudential Life Insurance Company is at 2.5x.

Currently, LIC has a 61.5% in terms of New Business Premium (or NBP), a 71.8% market share in terms of number of individual policies issued, an 88.8% market share in terms of the number of group policies issued for the nine months ended December 31, 2021. “Even though headwinds like declining market share, lower short-term persistency ratios and sub-par margins demand a discount to private players, the current valuation is attractive considering its strong market presence, improvement in profitability due to changes in surplus distribution norms and strong sector growth outlook,” analysts at Geojit Financial Services wrote in the IPO note.