LIC IPO Latest News: The size of LIC IPO could be around Rs 63000 crore The total equity size will be 632 crore shares. The government is selling 5 percent shares.
10% discount on application up to Rs. 2 lakhs
LIC IPO is preparing to give great discounts to the policyholders. If the source is to be believed, the LIC board members are in favor of the maximum discount. Policyholders can get up to 10% discount under LIC Act. Up to 10% discount can be given for applications up to Rs 2 lakh. However, the pricing will be decided after the pricing. Discounts will be offered on RHP. In the current scenario, up to 10% reservation quota can be maintained for policyholders in IPOs.
The IPO size could be Rs 63,000 crore
The size of LIC IPO could be around Rs 63000 crore. The total equity size will be 632 crore shares. The government is selling 5 percent shares. The government will sell about 31.6 crore shares. When LIC opens IPO, 10% shares will be reserved for policyholders. This will be mentioned in RHP. For this LIC policy holders need to update PAN. The law was amended to make LIC policyholders equal to employees, so that they can get 10% float share at 10% discount.
What are the benefits of IPO for policyholders?
When announcing the LIC IPO, the government stated that 10% of the issue size shares would be reserved for policyholders, just as shares are reserved for employees in the company’s IPO. But it will be on a competitive basis. In other words, policyholders will get shares at a lower price than ordinary investors. At present, LIC has about 289 million policyholders. Market law states that a company may issue shares to employees with a maximum discount of 10% of the floor price.
Watch G Business dgmartpro.com Live TV here
The date of LIC IPO has not been fixed yet
LIC’s IPO date has not yet been set, but the issue is expected to hit the market by March 2022. It will also be listed in the fourth quarter of FY22. Major changes have been made in the LIC Act 1956 for IPOs and listings.
What is the LIC IPO price band?
It is yet to be decided at what price the shares will be brought in the LIC IPO. But, from a market point of view, it is very important. In fact, the experience of government insurance companies was not good before they were listed on the IPO market. In 2017, shares of New India Assurance Company were offered at Rs 770-800. It was listed on the BSE at Rs 748.90. Today, the share price of New India Insurance is trading at around Rs 137, well below the list price. General Insurance Corporation of India was listed on the NSE at Rs 857.50, but today it costs around Rs 135.