LIC IPO: The mega initial share sale of the Life Insurance Corporation of India, or LIC, is finally set to open next week, on May 4 and close on May 9. The bid for anchor investors is set to open on May 2, as the government looks to raise about Rs 21,000 crore through the LIC IPO. The price band is set at Rs 902-Rs 949 per equity 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, as per the company’s papers filed with the SEBI. The LIC IPO is set to be listed on May 17, DIPAM secretary Tuhin Kanta Pandey was quoted as saying on Friday.
LIC IPO: Discount for Policyholders
At the moment, what most people across India may find attractive is the discount LIC policyholders get while buying shares of the LIC IPO. LIC policyholders will get a discount of Rs 60 while investing in the IPO. A significant portion of the upcoming LIC IPO, up to 22,137,492 equity shares or 10 per cent of the issue, has been set aside for the LIC policyholders, according to the Red Herring Prospectus (RHP).
LIC IPO for Policyholders: Key Things to Note
LIC policyholders whose PAN is linked to the insurance policy as of February 28, 2022, will be 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 issue, net of discount to policyholders under the policyholders reservation quota. Policyholders who are eligible will be able to apply at the discounted rate under the “Policyholder Reservation Portion”, which is the first of its kind.
The second thing policyholders have to ensure to bid for the LIC IPO its that they have a demat account, that matches with the PAN linked to the LIC policy. You can open a demat account by registering with a depository participant (DP), a list of which you can find on NSDL and CDSL websites. You will need an address proof, PAN, cancelled cheque, photograph 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, visit your profile on the DP’s platform. While navigation process may vary from company to company, you would want to look at the IPO section on the platform you are navigating through
-Click on the option and select the LIC IPO tab, after which you would want to look for the policyholder category. Enter your details, place a bid and click on the submit option
-After this, you will receive a mandate from the participating bank. Your application process will be done once you accept this mandate
-Once done, click on the ‘apply now’ button. Then complete the payment option by using UPI or any other online payment option to buy LIC IPO shares at discounted rates.
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