The life insurance corporation of India decided to reserve 10 percent of their highly awaited IPO offer side for all the policyholders. The Rs.21,000 crore LIC IPO which is going to become India’s largest IPO is going to open for the subscriptions on 4th May and close on 9th May. The central government is slated to offload 5 percent of its stake into the company but it will bring down the stake sale on the offer to 3.5 percent.

Also, the price band is mainly set from Rs. 902 to Rs. 949 per equity share. The policyholders will also get a discount of Rs. 60 per share and the employers and retail investors will also be entitled to get a discount of Rs.45.

LIC IPO | How Can LIC Policy Holders Invest In Mega Listing?


Policyholders will also make this company and now, we invite them to become shareholders. We are willing to invite millions of Indians to take part in this process as LIC will unlock the value said Tuhin Kanta Pander, Secretary, Department of Investment and Public Asset Management DIPAM.

How Can LIC Policy Holders Apply for LIC IPO?

Out of 221.37 million shares that will be offered for the sale, the life insurance will reserve nearly 22.14 million or 10 percent for the policyholders. Another 1.58 million shares or 0.7 percent will become part of the employee’s quota. Bids can also be done in multiples of 15 equity shares. The maximum bid amount under the policyholder, retail, and employee quotas can’t exceed Rs. 2 lakh. 

If you are one of the retail investors and you are also a policyholder or an employee then you can be able to bid under all the three categories in a separate manner so that the effective aggregate limit will become 6 lakh. 

Bids by the eligible policyholder can be done at the cut-off price and those bids which will be received at the above the offer price, net of the policyholder discount will be considered for the allocation under this part of “the red herring prospectus filed with the securities and exchange board of India on Wednesday. A policyholder quota is one of the last and first of its kind offering. 

As per the draft red herring prospectus filed back in February that the individual even the LIC policy on 13th February and the bid or the offer opening date gets applied under the policyholder reservation portion. The last date to link your policy with your PAN is 28th February. Those who cover under the policies will not be able to apply under this quota. 

You need to note that you need to have a Demat account to take part in this IPO and as a policyholder who wants to apply for the LIC IPO, need to be the first account holder in your Demat account. If it is a joint account then you need to be the first or the primary holder.

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