LIC IPO Day 1 — one out of every third applicant was a new investor, reveals Paytm Money

May 5, 2022


Credit: LIC

Paytm Money reveals LIC IPO trends

Wealth management company Paytm Money — a subsidiary of digital payments company One97 Communications — on Wednesday shared insights on the trends witnessed on the first day of the LIC IPO.

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There has been a 20x increase in applicants

Paytm Money recorded a 20-fold increase in the number of applications on Day 1, compared to applications seen on the Day 1 of the last five IPOs — namely Hariom Pipe, Veranda Learn, Uma Exports, Vedant Fashions and Adani Wilmar.

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More youngsters are investing this time

One out of every third applicant for LIC IPO on the first day of subscription was a new investor, Paytm Money has revealed. 45 percent of applicants were under the age of 30. Historically, over half of the IPO applicants on Paytm Money have been under the age of 30, it added.

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Investors are also investing more this time

The average investment amount in the LIC IPO was also 55 percent higher. This was further enabled by Paytm Money’s recent feature to allow high networth individuals (HNI) to invest upto ₹5 Lakhs in public issues using unified payments interface (UPI).

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Participation is high from all across India

Nearly 2 out of 10 applicants were from the top five cities in India. One in 10 participants were women, who had a marginally higher ticket size as compared to male investors, the report noted.

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What does Paytm Money’s CEO have to say?

“The LIC IPO is a milestone event for Indian capital markets and as expected we have received a very strong response from the investing community, and in particular from new investors in the market,” said Varun Sridhar, CEO, Paytm Money.

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LIC plans to raise ₹21,000 crore

The state-run LIC is looking to raise ₹21,000 crore by selling 22.13 crore shares or 3.5 percent stake in the life insurance behemoth. 10% of the issue is reserved for existing policyholders.

Credit: LIC

Subscription status on Day 1

The LIC IPO was subscribed 68 percent on Day 1, led by demand from employees and policyholders. The portion reserved for policyholders was fully subscribed in about three hours.

Credit: LIC

The IPO closes on May 9

LIC IPO is open for subscription for five days, between May 4 and May 9. The price band is fixed at ₹902-₹949. The allotment status of the IPO would be announced on May 12, and listing is expected on May 17, 2022.

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