New Delhi, PTI. The government has sold more than 22.13 crore shares or 3.5 per cent stake in LIC through the IPO of the country’s largest Life Insurance Corporation (LIC). The government has got about Rs 20,557 crore from the share sale. Earlier, the company has fixed the issue price of the IPO (initial public issue) at Rs 949.

Analysts have a mixed view on the listing of LIC IPO shares. Some expect a 10 per cent premium listing, while others suggest taking a call on LIC shares after the stock market opens. This will reduce the risk in investment.

Discount of Rs 60 per share to policyholders

Policyholders and retail investors have received shares at Rs 889 and Rs 904 respectively. That is, policyholders have got a discount of Rs 60 on a share and Rs 45 for retail investors. LIC shares will be listed in the market on May 17.

Investors applied by May 9

The IPO opened on May 4. Investors applied by May 9. The shares were allotted to the bidders on May 12. The country’s biggest IPO had closed with almost three times the subscription. Retail and institutional buyers picked it up. However, foreign investors did not show much enthusiasm.

Biggest IPO ever

LIC Rs 20,557 crore

Paytm Rs 18,300 crore

Coal India Rs 15,500 crore

Reliance Power – Rs 11,700 crore

strategy on listing

Analysts at Axis Securities said volatility in the market could impact LIC’s listing day performance. They expect LIC to start with a discount and are unlikely to book any listing benefit to investors. However, due to the discounts offered to policyholders and retail investors, they can make a marginal profit on listing.

Edited By: Ashish Deep