LIC IPO: Insurer raises Rs 5,627 cr from anchor investors with 71% of allotment to domestic mutual funds

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Insurance major Life Insurance Corporation’s (LIC) raised Rs 5,627 crore from anchor investors on Monday, ahead of the launch of its initial public offering (IPO), the largest public offer in the country. 71 percent of the total allotment was made to domestic mutual funds (MFs), shows a disclosure by the company.

The insurance company has allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece.

“Out of the total allocation of 59,296,853 equity shares to the anchor investors, 42,173,610 equity shares (71 percent of the total allocation) were allotted to 15 domestic mutual funds through 99 schemes,” the company said.

Among the domestic MFs that subscribed to the insurer’s shares are Aditya Birla Sun Life MF, Axis MF, SBI Mutual Fund, and HDFC MF.

SBI Mutual Fund subscribed to shares worth over Rs 1,000 crore via four different schemes while HDFC MF subscribed to shares worth over Rs 650 crore via ten different schemes. ICICI Prudential MF subscribed to shares worth over Rs 700 crore.

Singapore government’s sovereign wealth fund (GIC), subscribing to shares worth over Rs 400 crore and BNP Investments, subscribing to shares worth nearly Rs 450 crore, were among the foreign funds.

The LIC IPO, which was to be launched in March this year, was postponed after Russia’s invasion of Ukraine that sent shockwaves through markets leading to reduced enthusiasm around public issues.

The IPO size has been trimmed to raise Rs 21,000 crore, from the earlier Rs 35,000 crore, with the government reducing its stake dilution to 3.5 percent from the earlier 5 percent.

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