Government's stake sale in Life Insurance Corporation (LIC) saw strong participation from institutional investors in the first leg of the Offer-for-Sale (OFS), with nearly two-thirds of the shares reserved for them subscribed by noon on Tuesday.Data available till midday showed institutional investors had bid for more than 18.81 crore shares, amounting to 66.10% of the institutional portion on offer.
The bids came at an indicative price of Rs 382.07 per share, slightly above the floor price of Rs 382 fixed for the issue.
The institutional window remains open until 3.30 pm on Tuesday, while retail investors will get an opportunity to participate on Wednesday.The Centre is divesting up to 6.5% of its holding in LIC through the OFS, offering more than 82.22 crore shares.
Of these, over 28.46 crore shares have been earmarked for institutional investors.
The transaction consists of a base issue of more than 31.62 crore shares, equivalent to 2.5% of the insurer's total capital, along with a green shoe option of 50.60 crore shares, or 4% of the paid-up capital.At the floor price of Rs 382 a share, a fully subscribed offer would bring in around Rs 31,000 crore for the government's disinvestment kitty.
