LIC IPO Price, Eligibility, and Discount For Policyholders; Should You Buy?

The long wait for Indian investors comes to an end, as the nation’s most anticipated initial public offering, or IPO, is set to begin in a few hours. The visitors will be able to buy shares in India’s biggest insurance provider, Life Insurance Corporation (LIC), on Wednesday, May 4, which would be today.

Since the administration declared it, the LIC IPO has indeed been anticipated, and it is anticipated to create a new buzz on Dalal Street as it prepares for it. The incentives for qualified policyholders are what make the LIC IPO stand out, which is expected to raise Rs 21,000 cr at the top end of the budget band.

The LIC IPO has been interesting for this type of investor, most of whom are first-time shareholders, with significant discounts and a 10% reserved part for policyholders. Here is a list of important information for LIC policyholders who would like to participate in the LIC IPO currently.

LIC Initial Public Offering (IPO) Schedule

The LIC initial public offering (IPO) will begin today, May 4, and will remain accessible for bids until May 9. The anchor investment option was launched on May 2, and it was quickly overrun due to rapid growth.

LIC IPO For Policyholder’s Eligibility

Policyholders must tick specific conditions to be able to qualify under the policyholder quota, according to LIC’s Draft Red Herring Prospectus (DHRP) submitted with market watchdog Sebi. To register for the IPO, all policyholders must first open a Demat and trading account.

Second, according to the firm’s company statement, LIC policyholders whose PAN is connected to the insurance plan as of February 28, 2022, will be eligible to utilize the LIC IPO there under the subscriber quota.

Apart from that, there under Policyholder Reservation, all contracts which have not vacated LIC databases owing to renewal, surrender, or the policyholder’s demise are qualified for appointment.

Discount For Policyholders

The pricing range for the LIC IPO is Rs 902 to Rs 949 per equity share. Policyholders, on the other hand, will receive a reduction of Rs 60 per equity investment. As a result, at the highest end of the price range, LIC customers can participate in the LIC IPO for only Rs 889 per stake. It’s also worth noting that LIC policyholders could bid up to Rs 2 lakh for the issuance.