If you own any of these mutual funds, you've already got LIC shares

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Domestic mutual funds invested a total of Rs 4,002.27 crore in the anchor allotment of the LIC initial public offering (IPO). Of this, the SBI Mutual Fund has pumped in Rs 1,006.89 crore becoming the largest investor in the anchor book quota.

The Life Insurance Corporation of India (LIC) opened its initial public offering on Wednesday to retail investors for subscription. Prior to the mega opening, the country’s largest insurer raised around Rs 5,627 crore from anchor investors on Monday, by diluting about 59.3 million shares to 123 investors at Rs 949 apiece. Apart from domestic mutual funds, marquee investors, domestic insurance companies, corporates and NPS participated in the anchor allotment.

Anchor investors are high-profile institutional investors like a foreign portfolio investor or mutual fund or insurance company who are allotted shares before the subscription opens for retail and other investors. Anchor investors hold their shares for a certain period of time even after listing. As they invest in the IPO before it is opened to retail investors, anchor investors make the IPO process more attractive and instill more confidence.

Out of the total allocation to anchor investors, 15 domestic mutual funds invested Rs 4,002.27 crore through 99 schemes, accounting for 71.12 percent of the total anchor book portion. The LIC IPO found takers among top AMCs such as SBI, ICIC Prudential, Aditya Birla, Axis Mutual Fund and HDFC.

As the LIC is considered a value stock, a number of value-oriented funds picked up shares in the IPO. Of the 99 schemes, 67 equity funds such as ICICI Prudential Value Discovery, SBI Blue Chip Fund, and ICICI Pru Bluechip Fund piled up the stock at an investment of Rs 2,361 crore. Among hybrid schemes, SBI Equity Hybrid Fund, SBI Balanced Advantage Fund and HDFC Balanced Advantage Fund also placed their bet on the LIC IPO, Moneycontrol reported quoting data from LIC anchor book.

ICICI Prudential Mutual Fund invested Rs 725 crore in the LIC IPO through seven schemes, while HDFC Mutual Fund pumped in Rs 525 crore. Of the four equity schemes of SBI MF that invested in the public offer, SBI Equity Hybrid Fund alone put in Rs 518.99 crore, Indian Express reported.

Sundaram Multicap Fund, UTI Core Equity Fund, Invesco India Equity Savings Fund, IDFC Multicap Fund, IDFC Hybrid Equity Fund, IDFC Large Cap Fund, Franklin India Equity Advantage Fund, Baroda BNP Paribas Balanced Advantage Fund, Franklin India Bluechip Fund, Tata Balanced Advantage Fund and Franklin India Flexi Cap Fund were among the others that have invested in the IPO.

An individual who owns any of the 99 mutual fund schemes that have bought shares in the LIC IPO has already invested in the mega public offer. For those who are looking to invest directly, the corporation has priced the shares in the range of Rs 902-949 apiece. LIC policyholders will get a discount of Rs 60, while other retail investors and employees will be offered a Rs 45 discount. The issue opened for retail investors on May 4 and will close on May 9.

(Edited by : Sudarsanan Mani)

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