New Delhi: Shares reserved for Qualified Institutional Buyers (QIB), including banks and mutual funds in the LIC's public offer were subscribed fully on Monday morning, taking the overall subscription of the issue to a little over 2 times. Against 3,95,31,236 reserved, 4,61,62,185 bids were received, reflecting a subscription of 1.17 times, according to data posted on stock exchanges at 12:12 pm.
Non institutional investors' portion was subscribed 1.38 times. Retail individual investors bid for 11.89 crore shares as against 6.9 crore shares set aside for this segment -- translating into oversubscription of 1.72 times. Of the total, the policyholders' portion was subscribed 5.39 times, while that for employees was subscribed 4 times. The overall LIC issue was subscribed 2.05 times. Against 16,20,78,067 shares on offer, 33,19,04,280 bids were received. LIC has fixed the price band at Rs 902-949 per equity share for the issue.
The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while policyholders will get a discount of Rs 60 per share. With the public offer which closes later in the day, the government aims to generate about Rs 21,000 crore by diluting 3.5 per cent stake in the insurance behemoth.