What are the most important things that you need to know about the concept of LIC IPO?


The initial public offering offered by the life insurance Corp is the biggest possible IPO to be floated in the entire nation. The countdown for the biggest possible IPO has already begun and the excitement is significantly increasing day by day. This particular IPO will be opening on May 4 and will be closing on May 9. Through the public, this particular company is very much interested to raise approximately 21,000 crore rupees and there is a special provision for the policyholders as well in this particular case.

Some of the most important facts for the LIC policyholders have been explained as follows so that they can significantly and easily apply for the LIC IPO:

  1. Discount for the policyholders: The price band of this particular IPO has been fixed at 902-949 per share but on the other hand the policyholders will be getting a special discount of Rs.60 per share which is being offered by the company. Others will be paying 949 rupees per share and as a policyholder people will be paying out only 889 rupees per share. They can get the maximum bid of Rs.2,00,00 for the issue.
  2. Documentation:The policyholders over here need to have several kinds of documents in place to subscribe to be policy and in the regulatory filing the company always make sure that PAN is perfectly linked to the insurance in terms of checking out the eligibility. 45% of the discount will apply to the people in the proposed category in the retail investor system.
  3. Policyholders whose policies have lapsed: In the regulatory filing LIC very well justified that lapsed policies can also apply for the IPO and these kinds of policies will be remaining in limbo because they have not excited the LIC cause due to maturity, surrender or policyholders’ deaths which will be eligible under the category.
  4. An application under the quota also: All the individuals who are having the LIC policies under the group insurance scheme will not be getting any benefit from the policyholder quotas and the people can also never apply for the IPO under the same category.
  5. Two lakh limit: The IPO has also kept up the maximum investment by the policyholders up to Rs.2,00,000 and one cannot make public issues amounting to more than Rs.2 lakh. However, if the individuals are interested to add more of the LIC shares to their portfolio they can purchase them through the retail category very easily which will be based upon a discount of Rs.45 per share. Hence, in this particular case total of the bidding will be policyholder who can be capable of attaining Rs.4,00,000 based upon two lakh under the quota and two lakh under the retail category.

Hence, having a very clear idea about the basic technicalities associated with LIC IPO is very much important for people and further availing of the services of companies like 5paisa is a good approach in this case.



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