Dipam secy: LIC sets world record for retail interest
MUMBAI: Life Insurance Corporation (LIC) has generated the biggest ever retail response to an initial public offering (IPO). This makes it an ‘Atmanirbhar’ issue and generates optimism about capital markets despite present headwinds, said Tuhin Kanta Pandey, secretary, department of investment and public asset management (Dipam).
Speaking at the listing of the corporation in Mumbai on Tuesday, Pandey said that the IPO was the third-largest globally, and in Europe the aggregate IPOs were less than $3 billion. The issue saw 73 lakh investors applications with 53 lakh allottees.
Pandey said that with more than six crore policyholders, LIC’s customers amount to the population of a country. He said that the IPO had resulted in an increase in retail participation in the capital market. “Since November 2021 more than 50 lakh new demat accounts have been opened. We have got applications coming from hitherto unheard places, rural areas. Over 73 lakh investor applications were received from all categories other than anchor investors,” he said.
“If we have to really grow as a country, we need to have very strong financial markets, we need to have very strong capital markets, in order for us to raise money for productive enterprises,” said Pandey. He said that given the current context, participation of foreign institutional investors (FIIs) was Rs 2,291 crore in the main IPO and Rs 555 crore in the anchor book.
“There is an underlying story beneath all these ups and downs. There is a new generation of investors who do not mind using their mobile phones to make financial investments.” The IPO has also resulted in a scaling up of capital market technological capability with millions of allotments, unblocking of funds of unsuccessful applicants, and email notifications taking place within minutes instead of days and weeks that it used to take in the past.