Life insurance firm LIC's policyholders crowded in droves to apply for its shares on the opening day of the IPO, with the Rs 21,000-crore offering being subscribed for at a rate of more than 67 percent on Day 1. According to BSE statistics, at the end of the day's bidding, the share earmarked for LIC's policyholders was subscribed twice, while the Employee portion was likewise completely subscribed.

LIC IPO Bidding will Stay Open on Saturday

The retail investor section was 60 percent enrolled, while the non-institutional investor (also known as high net worth people) portion was 27 percent subscribed and the institutional investor category was 33 percent subscribed.

The majority of institutions and HNIs typically bid on the last day of the sale. The promotion is set to expire on May 9. On Wednesday, merchant bankers said that the IPO bidding will stay open on Saturday, but only for retail investors.

LIC had Issued Shares Worth About Rs 5,600 crore Before Getting Into IPO

Before the start of the IPO, LIC had issued shares worth about Rs 5,600 crore to a slew of institutional investors, with SBI Mutual Fund leading the pack. About 15 domestic mutual funds had purchased 70% of the anchor book, with the remaining 70% purchased by nine overseas portfolio investors.

The IPO is the largest in Indian market history, as well as the government's largest divestiture. The life insurance major would have a market value of almost Rs 6 lakh crore at the higher end of the IPO pricing band. Through this sale, the government is selling 3.5 percent of its stake in LIC.