LIC allotted just 2% of selloff issues

Life Insurance Corporation (LIC) has received share allotments worth Rs 324.40 crore in the divestment issues "" or 2.2 per cent of the total offer of Rs 14,755 crore in seven PSUs.

According to merchant banking sources, this includes LIC's subscription to the Power Trading Corporation (PTC) IPO "" and the six public sector floats. Its total subscription to these issues was worth Rs 2,383.07 crore or 16 per cent of the total offerings.

As per the allotment of shares as a percentage of the application money, LIC has received 24.47 per cent in IBP, 14.93 per cent in IPCL, 18.44 per cent in CMC, 10.12 per cent in Dredging corporation, 10.05 per cent in GAIL and six per cent in PTC.

The insurance behemoth has also subscribed to the Biocon issue and including this, the total application money amounted to Rs 3,000 crore.

While Oil and Natural Gas corporation, IBP, GAIL India Ltd, Indian Petrochemical Corporation Ltd (IPCL), Dredging Corporation and CMC came up with equity issues for public offer as part of the government disinvestment process, PTC was a public offer of equity shares out of the purview of disinvestment.

The allotments in favour of LIC was made under the qualified institutional investor (QIB) category and in ONGC alone the allotment to LIC has been 13.73 per cent of the application money.

It was reported to have applied for 15 per cent of the issue size which amounts to approximately Rs 1,604.25 crore.

It has received allotment for 13.61 per cent of the total application money put into these public issues.