LIC IPO Happening In Few Hours
LIC IPO: No more waiting guys, the Initial Public Offering (IPO) of Life Insurance Corporation of India is opening in a few hours. The date for initial share sale by the world’s fifth-largest insurance company is decided on May 4, which means today. This is the most awaited initial public offering for which all investors across the country were looking forward since the Government announced it. Dalal Street is expecting very much from this IPO and has high hopes. LIC’s IPO is very unique for the policyholders and employees as they are availing the discount benefits, but of course, there are eligibility criteria one should meet.
LIC IPO is making the dominating presence with lucrative discounts and 10 per cent of reserved shares for policyholders. Investors who are eligible to avail of these benefits are already very excited to bid as soon as the IPO opens.
Here Are The Major Points That LIC Policyholders Should Look At Before Investing?
LIC IPO Opening Date
The opening date for the LIC IPO is May 4 and will be available to bid till May 9. It is already released on May 2 for the anchor investors to place their bids and it got oversubscribed as expected, because of its robust demand.
Who Are Eligible To Avail Benefits As Policyholders?
- In the Draft Red Herring Prospectus (DRHP) filed by LIC to market regulator SEBI, it is stated that all the policyholders should meet some eligibility criteria to avail of exclusive benefits. Out of which the first rule is to have a Demat account to apply for the IPO.
- As per the company the policyholders who have linked their PAN with an insurance policy on or before February 28, 2022, are eligible to avail of the special privileges.
- However, the policies which are still in the records of LIC due to surrender, maturity, or policyholder’s death are eligible for reservation.
Also read:
Should I Invest In LIC IPO or Not? Explanation For First Timers
Policyholders, Who Are Not Eligible?
NRIs cannot place bids under the reservation quota as only Indian Citizens are allowed. On the other hand, policyholders who have purchased policies other than group policies are allowed to avail benefits under the policyholder quota.
Discount For Policyholders
The price band for LIC IPO is fixed at ₹902-949 per equity share. But for the policyholders, there is a discount of ₹60 per equity share, so they will only need to pay ₹889 per equity share to invest in the IPO. Please note that all the policyholders can place the maximum bid of ₹2 Lakh.
Subscribe For LIC IPO or Not?
Equity research analyst at Angel One, Yash Gupta said, “While LIC valuations appear to be cheap as compared to listed private players investors need to keep in mind that LIC has a lower VNB margin of 9.9% in FY2021 as compared to private players who have VNB margins of 22-27% due to higher share of participation & group product. Despite lower margins and inferior business mix, we believe that the IPO is being priced reasonably and offers value to investors with a long-term view.”
