indias 27 billion initial public offering of insurance giant lic was oversubscribed by thursday exchange data showed as small investors bid enthusiastically for the countrys biggest ipo to date prime minister narendra modis government is desperate for proceeds from the sale of 35 percent of its stake in life insurance corporation of india and other state assets to help fix tattered public finances the longawaited ipo  delayed since march due to market volatility  opened on wednesday and will close for bids on may 9 but the issue was already 103 percent subscribed by the end of its second day with the categories for employees and policyholders receiving double and triple the bids compared to the shares reserved the government is selling 221 million shares within a price band of 902 to 949 rupees 1181 to 1242 the insurer is offering a 60 rupee discount to policyholders for whom 10 percent of shares are reserved and a 45 rupee discount to employees and other small investors the category for small retail investors  for whom 35 percent of shares are reserved  was 93 percent subscribed by the end of thursday the government hopes lics ipo will attract legions of firsttime investors to the stock market in a country where less than five percent of its 14 billion population has trading accounts 648 million policyholders completed the formalities necessary to avail of the discount ahead of the ipo a government official said the portions reserved for large investors such as foreign and domestic institutions and high networth individuals were less than 50 percent subscribed by the end of thursday the ipo is a crucial step in modis policy to monetise and modernise staterun companies and plug an estimated 166 trillion rupee fiscal deficit this financial year founded in 1956 by nationalising and combining 245 insurers lic was for decades synonymous with life insurance in postindependence india until the entry of private companies in 2000 it continues to lead the pack with a 61 percent share of the life insurance market in india with its army of 13 million lic agents giving it huge reach especially in rural areas but lics market share has declined steadily in the face of competition from netsavvy private insurers offering specialised products