LIC IPO: Retail investors have become ‘third superpowers’, says Anil Singhvi;

Describing retail investors as the third superpower, G Business Managing Editor Anil Singhvi said in a special edition of his Editors Tech that retail investors together proved their mettle in the initial public offering of Life Insurance Corporation of India, which ended on Monday, May 9. 2022.

According to Singhvi, “retail investors have become a major force in the last two years.” Overall, 75 lakh applications for LIC IPO were accepted in 6 days – which is fair, he added.

With some discounts, incentives and guarantees of good returns, retail investors together could contribute a large part to the LIC IPO, the managing editor said, adding that he somehow expected it.

The quota of policyholders and retail investors has been met by LIC IPO as DIPAM (Investment and Public Asset Management Division) Secretary Tuhin Kant Pandey said on Monday that the issue was mainly raised by domestic investors.

“We reiterate that the LIC IPO will be easily met, with good response and taking around Rs 21,000 crore from the Indian market is not a big deal,” Singhvi said in his remarks. The LIC IPO is an example that the country is ready for IPOs of large and valuable companies, he added.

Prior to the LIC IPO launch, the managing editor advised to apply for the offer for medium to long term profit. In this context, he said, ‘We should think short / medium to long term.

The initial public offering of LIC, the country’s largest insurer, closed on Monday, with almost 3 times more subscriptions. While the share of institutional investors was subscribed 2.83 times, the share of retail investors was subscribed 1.99 times.

The reserved portion for policyholders and employees was subscribed 6.12 and 4.40 times respectively, while the corporate portion was subscribed 2.91 times.

The government has sold 3.5 per cent stake in LIC through an IPO in a price band of Rs 902-949 per share. The government expects to earn around Rs 20,000 crore from the sale of shares.

The shares will be allotted to bidders on May 12 in the LIC IPO, and the insurance behemoth shares will be listed on the stock exchange on May 17.

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