IPO IPO: The mega initial share sale of the Life Insurance Corporation of India, or LIC, finally kicks off next week, May 4, and will close on May 9. to raise approximately Rs 21,000 crore through the LIC IPO. The price band has been set at Rs 902-Rs 949 per share, LIC has said in its Red Herring prospectus. However, these rates are for general investors as policyholders, retail investors and employees can get a discount of up to Rs 60, according to the company’s papers filed with the SEBI. The LIC IPO is expected to be listed on May 17, DIPAM secretary Tuhin Kanta Pandey said Friday.
LIC IPO: discount for policyholders
What most people in India find attractive at the moment is the discount that LIC policyholders get when buying shares of the LIC IPO. LIC policyholders get a discount of Rs 60 while investing in the IPO. A significant portion of LIC’s upcoming IPO, up to 22,137,492 shares or 10 percent of the issue, is reserved for LIC policyholders, according to the Red Herring Prospectus (RHP).
LIC IPO for policyholders: key points to consider
LIC policyholders whose PAN is linked to the insurance as of February 28, 2022 are eligible to apply for the LIC IPO, the insurer has made clear in its Red Herring Prospectus. LIC policyholders can place a maximum bid of Rs 2 lakh for the issuance excluding policyholder discount under the policyholder reserve quota. Eligible policyholders can apply at the discounted rate under the “Policyholder’s Reservations Section”, the first of its kind.
The second thing that policyholders must guarantee to bid on the LIC IPO is that they have a demat account that corresponds to the PAN associated with the LIC policy. You can open a Demat account by registering with a Depository Participant (DP), a list of which can be found on NSDL and CDSL websites. You will need proof of address, PAN, canceled check, photo and applicable fees to open a demat account to invest in LIC IPO.
How to buy LIC IPO for policyholders?
-After opening the demat account, go to your profile on the DP’s platform. While the navigation process may vary from company to company, you might want to check out the IPO section on the platform you are navigating through
-Click on the option and select the LIC IPO tab, after which you want to search for the policyholder category. Fill in your details, place a bid and click on the shipping option
-After this you will receive an authorization from the participating bank. Your application process will be completed once you accept this mandate
-When you are ready, click the ‘Apply Now’ button. Then complete the payment option by using UPI or another online payment option to buy LIC IPO shares at discounted rates.
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