LIC IPO Subscribed 1.03 Times On Day 2

Employees and policyholders continued to lead bidding for shares of Life Insurance Corp. on the second day of its initial public offering, India’s biggest.

The IPO was subscribed 67% on the first day. The portion reserved for policyholders was fully subscribed in about three hours.

The government is looking to raise as much as Rs 21,000 crore by selling a 3.5% stake in the nation’s biggest life insurer.

The IPO will remain open on Saturday as well, according to a notification on the National Stock Exchange of India. It will close on May 9.

The issue, according to its red herring prospectus, will comprise an offer for sale of 22.13 crore equity shares at Rs 902-949 apiece.

Employees and retail investors will get a discount of Rs 45 apiece, while policyholders will be able to buy at Rs 60 below the issue price.

The proceeds will be paid to the government, the selling shareholder. LIC expects that the proposed listing of its equity shares will enhance its visibility and brand image.