LIC IPO: The mega initial public offering (IPO) of insurance giant Life Insurance Corporation (IPO) of India is open for subscription today. The LIC IPO has already been subscribed 1.03 times as of Day 2, with the portion set aside for LIC policyholders portion being subscribed 3.11 times. The employees subscribed 2.21 times, while retail investors subscribed 93 per cent shares of their allotted quota. On the other hand, QIBs bid for 40 per cent shares and NII bid for 47 per cent of the portion set aside for them. Through the LIC IPO, the government plans to mop up Rs 21,000 crore to meet its disinvestment targets.
The reason why the LIC IPO is such a hit among LIC policyholders may be attributed to the attractive discounts for them. Here is everything you need to know if you are an LIC policyholder who wants to subscribe to the LIC IPO:
LIC IPO for Policyholders — Who Can Buy?
The LIC in its Draft Red Herring Prospectus (DHRP) has listed certain criteria with which policyholders will be able to use their quota and buy shares of LIC IPO at Rs 60 discount. First of all, all policyholders need to open a demat account to apply for the IPO. Secondly, LIC policyholders whose PAN is linked to the insurance policy as of February 28, 2022, will be eligible to apply for the LIC IPO under the policyholder quota, the company has said in its regulatory filing.
Apart from this, all policies that have not exited LIC records due to maturity, surrender, or the policyholder’s death are eligible for reservation under the Policyholder Reservation.
LIC IPO: Documents Required
You will need an LIC policy that has been linked with the PAN associated with your demat account. For opening a demat account, you need your identity proof, age proof, PAN details, photographs etc.
LIC IPO Price, Size
The price band for LIC IPO has been set at Rs 902 to Rs 949 per equity share. However, LIC IPO for policyholders is set to see a discount of Rs 60 per share, while employees and retail employees get Rs 45 discount per share.
The government is looking to mop up Rs 21,000 crore through this issue. Anchor investors have already funded Rs 5,000 crore in the LIC IPO.
LIC IPO GMP Today
Market observers said shares of LIC are available at a premium of Rs 65 in grey market today. The LIC IPO GMP today stands at Rs 65, which is the same as yesterday. However, LIC IPO GMP has come down from Rs 90 to Rs 65 in the last few days amid negative market sentiments.
LIC IPO for Policyholders
LIC Policyholders who want to subscribe to the LIC IPO can use different brokerage apps like Groww, Upstox and Zerodha or use the platform of any other depository participant (DP) to book the issue.
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