LIC IPO Price, Eligibility, and Discount For Policyholders; Should You Buy

LIC IPO Price, Eligibility, and Discount For Policyholders; Should You Buy

LIC IPO Price, Eligibility, and Discount For Policyholders; Should You Buy

The most awaited initial public offering (IPO) in India is about to get underway in a few hours, which means that investors in the country will finally be able to stop their lengthy wait. On Wednesday, May 4, which is today, the guests will have the opportunity to purchase shares in the Life Insurance Corporation (LIC), which is the largest insurance provider in India.
The initial public offering of LIC has been awaited ever since the administration indicated that it will occur, and it is believed that it would generate a fresh buzz on Dalal Street as it prepares for it. The primary differentiating factor of the LIC initial public offering (IPO), which is anticipated to earn Rs. 21,000 cr at the upper end of the budget range, are the incentives that will be offered to qualifying policyholders.
This kind of investor, the vast majority of whom are first-time shareholders, found the LIC IPO to be an appealing opportunity because considerable discounts were offered and 10% of the stock was set aside for policyholders. Policyholders of LIC who are interested in taking part in the LIC initial public offering (IPO) at this time should review the following list of key information.

Timetable for the Initial Public Offering (IPO) of LIC

Today, May 4, marks the beginning of the initial public offering (IPO) for LIC, which will be up for bids for a period of time extending all the way up to May 9. On May 2, the anchor investment option was made available, but owing to the fast pace of expansion, it was shortly exhausted.

The LIC Initial Public Offering and the Eligibility of Policyholders

According to LIC’s Draft Red Herring Prospectus (DHRP), which was lodged with market watchdog Sebi, policyholders need to check particular requirements in order to qualify for the policyholder quota. To participate in the initial public offering (IPO), each and every policyholder is required to first establish both a Demat and trading account.
Second, according to the company statement released by the organisation, LIC policyholders who have a PAN that is linked to the insurance plan as of February 28, 2022 will be entitled to utilise the LIC IPO there within the subscriber quota. This information can be found in the company statement.
Aside from that, under the Policyholder Reservation section, any contracts that have not been removed from LIC databases due to the policyholder’s death, renewal, or surrender are eligible for appointment. This is the case regardless of the reason.

Discount For Policyholders

The initial public offering (IPO) of LIC has a pricing range of Rs 902 to Rs 949 per equity share. On the other hand, policyholders will be eligible for a discount of sixty rupees (Rs.) for each equity investment. As a direct consequence of this, LIC clients have the opportunity to participate in the LIC IPO for a cost of only Rs 889 per share at the very top end of the pricing range. It is also important to note that LIC policyholders had the opportunity to place bids of up to Rs. 200,000 for the issue.

Leave a Reply

Your email address will not be published.