MUMBAI: LIC raised Rs 5627 crore from 123 anchor investors at the upper price band of Rs 949 apiece, signalling strong demand from global and domestic institutions.
Of the 5.93 crore equity shares allotted to the anchor investors, 4.21 crore shares or 71.12% were allocated to 15 domestic mutual funds through 99 schemes.
SBI Equity Hybrid Fund with 9.22% of the anchor portion, ICICI Prudential Value Discovery Fund (3.91%), SBI Balanced Advantage Fund (3.64%), HDFC Trustee Company (3.55%) were among the prominent MFs.
Prominent global investors included BNP Investments Ltd (8% ), Norway's Government Pension Fund Global (4%) and the Government of Singapore ( 2.7%).
According to sources, the value bid by anchor investors was over Rs 7000 crore but this couldn't be independently verified.
The anchor investor bidding at the upper band ascribes a value of Rs 6 lakh crore to the insurer, whose IPO of Rs 21000 crore is the largest to date. The price band for the issue, which runs from May 4-9, is Rs 902-949. Listing is expected on May 17.
The offer size was reduced from 5% to 3.5% in light of the prevailing market conditions amid the Russian invasion of Ukraine which caused oil to jump to multi-year highs and an FII sell-off from markets.
Following the invasion in late February, FIIs offloaded shares worth $ 5.4 bn in March and $ 2.23 bn in April.
Of the 22.13 crore shares on offer, 50% are reserved for qualified institutional bidders, 15% for non-institutional bidders and 35% for retail investors. Retail investors who are employees and policyholders can bid for an aggregate of Rs 6 lakh per investor, making the offer a unique one as the retail category is capped at Rs 2 lakh per investor in IPOs.
Retail and employees will be allocated shares at a Rs 45 discount while policyholders will get a Rs 60 per share discount.