LIC IPO: Out of about 31.62 crore shares offered for sale in the IPO, 10 percent of the shares will be reserved for the policyholders of LIC and 5 percent for the employees of the company.
LIC IPO: Investors are eagerly waiting for the IPO of Life Insurance Corporation of India (LIC), the country’s largest insurance company. The government is going to sell about 5 percent stake in LIC through IPO. According to the draft red herring prospectus (DRHP) filed by LIC on February 13, the government intends to sell 316,249,885 equity shares of Rs 10 face value through this IPO. This issue will be completely based on Offer for Sale (OFS).
Out of about 31.62 crore shares offered for sale in the IPO, 10 percent of the shares will be reserved for the policyholders of LIC and 5 percent for the employees of the company. In this way, crores of policyholders of LIC have a chance to apply for this IPO. Apart from this, a discount of 10 percent is also expected on the issue price. According to a Bloomberg report, the issue price of LIC could be between Rs 2,000 and Rs 2,100.
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who can apply
If you are a policyholder and want to apply under the policyholders quota, then you must fulfill certain conditions for this.
- The policy must have been allotted in your name on or before February 13, 2022.
- PAN should be linked with the policy. The last date for linking policy and PAN card is February 28.
- Apart from this, you should have a demat account in your name. In case of joint demat account holders, the first holder will be eligible.
- Through a demat account, a policyholder can invest Rs 2 lakh under the policyholders’ quota. In addition, he can apply to invest another Rs 2 lakh in the general pool for retail investors. In this way he can apply for maximum investment of Rs 4 lakh.
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Who can’t apply
- Those who will not be able to apply under the portion reserved for LIC policyholders include nominees, people receiving annuity after the death of the policyholders and NRI (Non-Resident Indian) policyholders.
- In case of joint life policies, suppose both the policyholders are eligible, but if the policyholder does not have a demat account or is not the first holder of a joint demat account, then he also cannot apply for this IPO.
- Policyholders whose policies have been allotted after February 13, 2022 are not eligible to apply against policyholders’ quota.
- Policyholders whose policy is not linked to PAN card are also not eligible to apply under this quota.
(Article: Amitava Chakrabarty)
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