Winning Bizness Desk
Mumbai. LIC IPO got a bumper opening on its first day on Wednesday. The country's largest IPO ever opened for subscription at 10 am and was subscribed 64%. The portion reserved for policyholders (10% of the total shares) became oversubscribed. This means that 1.9 times bids have already been made under this quota. 16 crore 20 lakh 78 thousand 67 shares have been put up for sale. So far, bids have been received for more than 10 crore shares. The reserve share for employees has also been fully subscribed. While 57% share of retail investors has been subscribed. Investors will get a chance to invest till May 9.
Listing on May 17
The company's shares will be listed on the stock exchanges on May 17, a week after the close of the IPO. The central government is expected to get Rs 21,000 crore from LIC's IPO. Under the IPO, the government is selling its 22.13 crore shares in the company. The price range for this has been fixed at Rs 902 to Rs 949 per share. As per SEBI rules, equity shares of any company are issued only in demat form. Hence anyone, be it policy holders or retail investors, needs to have a demat account.
Should I invest in LIC's IPO or not?
Most of the market analysts are advising to invest in this. Money can be made in an IPO both in the short term and long term. However, analysts are advising to stay in it for the long term. This is because the business model of insurance companies is long term. If you apply under the policy holder quota, you will already get a discount of Rs 60 and even if the share is listed at Rs 949, you will still get a benefit of Rs 60 per share.