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LIC IPO: NSE Makes A Big Change As Day 1 Sees Mass Investors

About 16 lakh shares were bid for, while out of the share reserved for the employees of the company, about 27 per cent of the shares were also bought

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The government has made a big chamge regarding LIC IPO buying rule. This country's largest IPO has been open for common investors from today, i.e., May 4 to May 9.

This IPO of the government is getting tremendous response from the investors. In the first few hours, the much-awaited IPO has become 33 per cent subscribed making a major hit in the market. About 16 lakh shares were bid for, while out of the share reserved for the employees of the company, about 27 per cent of the shares were also bought.

Ordinary investors were getting 4 days to subscribe to this issue due to the market being closed on Saturday and Sunday. But now the notification of the National Stock Exchange (NSE) said that retail investors will be able to subscribe to the IPO even on Saturday. After this change, you will be able to subscribe to this issue for 5 days.

Earlier on Wednesday morning, the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) was opened for general investors. The government aims to raise Rs 21,000 crore from this IPO by selling 3.5 per cent shares of LIC.

As per Paytm Money data, the number of applications seen on Day 1 was unprecedented, with Paytm recording 20x applications vs average applications seen on Day 1 of the last 5 IPOs. The average investment amount in the LIC IPO was also 55 per cent higher.

More interestingly, the data also indicated that the LIC IPO saw broad participation from across India, with the top 5 cities accounting for less than 18 per cent of the total applications. Women investors contributed to 10 per cent of overall applications on Day 1 with a marginally higher ticket size as compared to male investors.

Varun Sridhar, CEO of Paytm Money said, “The LIC IPO is a milestone event for Indian capital markets and as expected we have received a very strong response from the investing community, and in particular from new investors in the market. On Paytm Money, 1 out of every 3 LIC IPO investors was a first time investor. Ahead of the LIC IPO, Paytm Money had also brought out industry-first features like enabling HNI investors to invest upto Rs 5 lakh through UPI on the platform."

LIC shares will be credited in demat accounts on May 16. At the same time, the company can be listed on the stock market on May 17. LIC has raised Rs 5,627 crore from anchor investors. 5.92 crore shares were reserved for anchor investors at the rate of Rs 949 per equity share. This IPO is the biggest IPO of the country till date. After this, Paytm's IPO is at number two.

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national stock exchange LIC IPO Paytm Money Varun Sridhar