IPO IPO: LIC’s mega IPO, which kicked off on Wednesday, May 4, has received a lot of response so far, especially from the company’s policyholders. The IPO of India’s largest insurer, Life Insurance Corporation, is open to the public through Monday, May 9. At 12:30 p.m. Saturday, 1.44 times had been subscribed to LIC’s IPO, with LIC policyholders bidding for 4.19 times the shares reserved for them, data from the NSE shows. The government has paid a 3.5 percent stake in the company. The IPO of the LIC would remain open on Saturday (May 7) and Sunday (May 8) between 10 a.m. and 7 p.m., according to the NSE.
The government plans to mop up Rs 21,000 crore through this matter. Anchor investors have already funded Rs 5,000 crore in the LIC IPO.
Weeks prior to the opening of the issuance, LIC’s IPO for policyholders was encouraged by both the government and the insurance giant, with many policyholders receiving notifications urging them to subscribe to the issuance. Here’s everything you need to know about LIC IPO for policyholders.
What is LIC IPO Policyholder Quota?
As the first of its kind, the government has allocated 10 percent of LIC IPO shares to LIC policyholders, with 2,21,37,492 shares reserved for the group. They also get a discount if they book the release.
“Policy holders have also created this company. We now invite them to become shareholders. We want to invite millions of Indians to participate in this process as LIC unlocks its value,” said Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM).
LIC IPO for Policyholders: Discount
LIC policyholders will get a discount of Rs 60 if they bid through the policyholder quota, the company said. The price band for the IPO of LIC has been set at Rs 902 to Rs 949 per share of the share. This means that for LIC policyholders, the price of the LIC IPO share will be Rs 849 each at the higher end of the price range. For employees and private investors, a discount of Rs 45 is given each.
LIC IPO for Policyholders: Who Is Eligible?
LIC policyholders who have a policy associated with a valid PAN number are eligible for the policyholder discount and apply through the quota. LIC policyholders also need a demat account to apply for the IPO and must ensure that the same PAN is linked to the policy as of February 28 of this year.
Those with a group policy cannot bid under this quota, while all other policies are eligible.
“Offers by eligible policyholders may be made at the closing price…only those bids received at or above the offer price, excluding the policyholders’ discount, are eligible for allotment under this section,” the red herring said. prospectus of the LIC.
How to apply for LIC IPO for policyholders?
Eligible LIC policyholders can use online banking apps or custodial platforms such as Groww, Zerodha and Upstox and search for the quota of the policyholders to apply for the LIC IPO. They can bid up to 14 lots with 15 shares each and must pay through UPI or ASBA.
Read all the latest news, breaking news and IPL 2022 Live Updates here.
