LIC IPO: Foreigners give offer the miss
Foreign investors largely stayed away from the LIC issue amid global risk aversion and rising bond yields.
“This issue has shown that our capital markets and our investors also have the capacity. We can’t depend only on foreign portfolio investors. FPIs are also welcome, but predominantly this issue has been domestically lifted,” Dipam secretary Tuhin Kanta Pandey said.
Bidders in the IPO will be allocated shares on May 12, and the insurance behemoth will be listed on stock exchanges on May 17, Pandey said. Briefing reporters after the close of the issue, Pandey said the IPO has met with tremendous success across all the segments.
“Domestic investors have successfully pulled off the LIC IPO. It is an example of Aatmanirbhar Bharat,” he said.
It will help deepen the capital markets, the secretary added. The government sold 3.5 per cent stake in the insurance giant through the IPO.
Last week, LIC raised Rs 5,627 crore from anchor investors, with 71 per cent of the amount coming from domestic mutual funds (MFs).
The insurer allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece, with 42.17 million shares allotted to 15 domestic mutual funds through 99 schemes.
The government was looking to raise Rs 20,557 crore by diluting 3.5 per cent stake in the state-owned insurer, making it the biggest public offering of the Indian capital market. Initially, the government was looking to dilute 5 per cent stake in the insurer but given the volatile market conditions due to geo-political tensions, it decided to reduce the equity dilution.