LIC IPO’s Rs 5,630 crore anchor book oversubscribed: Report

NEW DELHI: Reflective of the huge investor interest in the initial public offer (IPO) of Life Insurance Corporation (LIC), the Rs 5,630 crore anchor book saw overwhelming response and was oversubscribed, according to a report by CNBC TV18. The official data is not out yet. The company will likely notify it by evening.

The issue is priced in the Rs 902-949 range. It is not immediately clear at what price the shares are going to be allotted to these anchor investors. But in cases of oversubscription usually it is allotted at the ceiling price of the band.

There is also no clarity on who the anchor investors are. Earlier reports said Goldman Sachs, Morgan Stanley, Nomura, Singapore’s GIC Pte and Norway’s sovereign wealth fund, and SBI Mutual Fund would be among those who may bid for the LIC’s anchor book.

If the trend during anchor rounds is replicated in the public bidding that is set to open from May 4, the huge size of the issue will not be a problem for it to sail through. Most analysts also suggest subscribing to the issue.

The government, which holds 100 per cent stake in LIC plans to raise Rs 20,557 crore from the primary market. This makes the issue the biggest ever IPO the country has ever seen. If successful, this will give the insurer a valuation of about Rs 6 lakh crore.