The Reserve Bank of India (RBI) has announced that all ASBA-designated bank branches will remain open to the public on Sunday to facilitate the processing of LIC IPO applications.
The state-owned LIC’s initial public offering (IPO), the country’s largest offering to date, opened for subscription by retail and institutional investors on Wednesday.
The offer ends on May 9th and there will also be an offer on May 7th (Saturday).
The Government of India, in order to facilitate the LIC IPO tender, has requested that all bank branches dedicated to processing ASBA (Application Supported by Blocked Amount) applications open on May 8th, 2022 (Sunday) for the may remain open to the public, RBI said in a statement on Wednesday.
“The matter has been examined and it has been decided that banks will be allowed to keep all their ASBA-designated branches open on May 8, 2022 (Sunday) for the above purpose,” it said.
Generally, ASBA is the mechanism through which investors apply for shares in a public offering.
As of Wednesday, the first day of the IPO, the retail portion was oversubscribed while the total subscription was 0.64 percent.
The government intends to generate around Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance giant.
LIC has set the price range for the issue at Rs 902-949 per share. The offer includes a reservation for eligible employees and policyholders. Retail investors and eligible employees will receive a rebate of Rs 45 per share and policyholders will receive a rebate of Rs 60 per share.
The share sale will take place via the Offer For Sale (OFS) of up to 22.13 billion shares and the listing is expected on May 17th.
Comments are closed.