What has been the subscription status for the LIC IPO?

The LIC IPO was subscribed 1.38 times as of the close of market hours on Friday 06th May. However, the granular break-up is a lot more interesting. The policyholder quota was subscribed 4.00 times while the employee portion was subscribed 3.10 times and retail individual investor quota got subscribed by 1.23 times. However, the QIB quota was subscribed by just about 56% while the HNI quota was subscribed 76%.

However, considering the robust response to the anchor bidding it does look like the QIB response should build up substantial numbers on the last day. As of now, the IPO has only seen bids from QIBs to the tune of Rs.80 crore. In addition, the regulator has also allowed the brokers to accept retail investor bids even on Saturday and Sunday since most of the large brokers only accept retail bids up to a certain cut off time on the last day of the IPO.

It may be recollected that the price band for the IPO has been fixed between Rs.902 to Rs.949 per share. There is an additional discount of Rs.45 and Rs.60 per share respectively for retail bidders and policyholders bids, respectively. The IPO closes on Monday 09th May, and is expected to have an indicative market cap of Rs.6 trillion at the IPO price. It has bene priced at just about 1.1 times the EV, against peer group valued at 2.5 to 3X EV.