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Factbox-Four key facts about LIC’s record IPO in India as shares tumble in their early days

fell nearly 8% in their market debut on Tuesday, despite the country’s biggest-ever IPO being oversubscribed at the top of the price range.

The government raised about $2.7 billion by selling a 3.5% stake in the state-owned company

which controls the majority of the market.

The listing comes as India’s IPO market slows, with first-quarter proceeds raised across major Indian markets worth $995 million through the three largest IPOs, compared to $2.57 billion. dollars a year earlier, EY said in a report on Monday.

Here are four key points about the LIC list:

PRICE

The price range for the issuance of LIC has been set between 902 and 949 rupees per share. LIC offered a rebate to employees and retail investors of Rs 45 per share, while policyholders received a rebate of Rs 60 per share.

Investors offered 478.4 million shares against 162.1 million in total. Besides retail and institutional investors, a group of foreign investors and several domestic mutual fund companies had bid for its anchor book.

INVESTMENTS

The insurer has an investment of Rs 9.8 trillion in shares as of December 2021 and about 4% of the total market capitalization of the National Stock Exchange is held by LIC.

It also has assets under management of 39.56 trillion rupees as of September 30, 2021, more than three times the total assets under management of all private life insurers in Asia’s third largest economy.

COMPETITION

The company is a household name in India and holds a majority market share. However, new business grew at a timid pace compared to some other players and increased competition from private insurers led the company to lose ground.

LIC’s market share fell to 63% from 66% in 2019, according to data from the insurance regulator. The company now expects market share to stabilize around current levels as it strengthens its digital presence and accelerates distribution channels.

CUSTOMERS AND DISTRIBUTION NETWORK

LIC has sold more than 280 million policies and has the largest agent network in the country with 1.33 million registered agents as of December.

The agent network played a key role in generating policyholder interest ahead of the IPO.

The Mumbai-based insurer also has the highest brand value of $8.65 billion for FY21, according to a report by Brand Finance which also rated it the tenth most valuable insurance brand. in the world.