The LIC IPO is set to begin on May 4th, and here's everything you need to know about the benefits and restrictions for policyholders.
Because of the public behemoth's reputation and brand value, those looking to buy a part of the IPO are hoping for quick gains.
The Life Insurance Corporation (LIC) has launched the country's largest initial public offering (IPO). The countdown to the world's largest IPO has begun, and Dalal Street is buzzing with anticipation. Because of the public behemoth's reputation and brand value, those looking to buy a part of the IPO are hoping for quick gains. The momentum is on the rise, thanks to anchor investors buying a large portion of the LIC IPO.
The LIC IPO will begin on May 4 and end on May 9. The corporation wants to raise Rs 21,000 crore from the public. The corporation has developed a specific arrangement for its policyholders, which has yet to be implemented. Those who have purchased policies can take advantage of the 'policyholders quota,' which provides discounts and benefits from the issue.
Important information for LIC policyholders:
Before investing in the IPO, LIC policyholders should be aware of the following critical factors.
Discount for policyholders in the LIC IPO
The pricing range for the LIC IPO is Rs 902 – Rs 949 per share. Policyholders, on the other hand, will receive a special discount of Rs 60 per share. As a result, when others are paying Rs 949 per share at the top end, policyholders will only be paying Rs 889 per share. Policyholders of the Life Insurance Corporation of India (LIC) can bid up to Rs 2 lakh for the issue.
What documents are required for the LIC IPO?
For subscribing to the coverage, policyholders will need to have specific documentation on hand. Only policyholders whose PAN is linked to the insurance policy will be allowed to apply, according to a regulatory filing. Those who do not have a PAN associated with their insurance will be considered like any other retail investor and would not be eligible for the Rs 60/- discount. They will, however, be eligible for a 45 percent discount, as recommended in the retail investor's group.
Policyholders who have had their coverage lapse
Those with lapsed policies can also apply for the IPO, according to the LIC's regulatory filing. Many policies that have remained in limbo and have not left the LIC records owing to maturity, surrender, or the death of the policyholder will be eligible for this category.
Which policyholders are not eligible to apply under the quota system?
Policyholder quota will not be available to those who have LIC policies under the group insurance plan. NRIs are also ineligible to file for an IPO under the same category.
What is the limit of Rs 2 lakh?
The maximum investment by policyholders in the IPO is Rs 2 lakh. Public issues worth more than Rs 2 lakh are not available for purchase. If they still want to add more LIC shares to their portfolio, they can do so through the retail category, which offers a Rs 45 discount per share. So, a policyholder's total bidding potential is Rs 4 lakh, divided into Rs 2 lakh for quota and Rs 2 lakh for retail.
