LIC IPO: The wait is almost over for investors across India as the country’s most awaited initial public offering, or IPO, is opening in a few hours. India’s largest insurance company, Life Insurance Corporation (LIC) will open its initial share sale for the public on Wednesday, May 4, which is today. The LIC IPO has been looked forward to ever since the government announced it, and is expected to bring a new buzz to Dalal Street as it gears up for the same. The uniqueness of LIC IPO, which is likely to garner Rs 21,000 crore at the upper end of the price band, lies in its benefits for eligible policyholders.
With attractive discounts and a 10 per cent reserved portion for policyholders, the LIC IPO is already exciting for this category of investors, many of who are first-time investors. Here is a list of the key things LIC policyholders, who want to invest in the LIC IPO today, must know.
When is LIC IPO Opening?
LIC IPO is opening today, on May 4, and is going to remain open for bidding till May 9. The anchor investing option has already opened on May 2, with the portion getting oversubscribed due to strong demand.
LIC IPO for Policyholders: Who is Eligible?
In its Draft Red Herring Prospectus (DHRP) filed with market regulator Sebi, LIC has said that policyholders need to check certain criteria to be eligible to apply under the policyholder quota. 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 for Policyholders: Who is Not Eligible?
NRIs cannot apply for the IPO via the Policyholder Reservation Portion as only an Indian citizen can only apply for the LIC IPO. Meanwhile, all LIC policyholders with policies other than group policies are eligible for bidding in the policyholder quota.
