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How Can Policyholders Apply For LIC IPO? Know Here
LIC IPO Date: The government had earlier said that the IPO will be listed before March 31, 2022. According to a latest Reuters report, the applications will open on March 11, 2022.
New Delhi: LIC IPO has become of of the most anticipated moments in the history of Indian share markets. The largest IPO in the history of India is expected to hit the bourses by March 31, 2022. According to a report by Reuters, the LIC IPO may open for applications on March 11, 2022. The IPO is expected to make LIC the company with the largest market cap in India.
LIC IPO for policyholders is more exciting. According to the Draft Red Herring Prospectus (DRHP) filed by the company with the SEBI recently, 10 per cent of shares have been reserved exclusively for the current policyholders of LIC. Also, according to DRHP, as of September 30, 2021, the company has over 28 crore policyholders.
Also, the company is planning to offload 31.6 crore shares in an offer-for-sale in the upcoming IPO. The IPO is also expected to help the government to meet the disinvestment target of the current year, which according to the Budget 2022, is set at Rs 78,000 crore.
How Can Policyholders Apply For LIC IPO?
- The policyholders, according to a report by Financial Express (FE), who have one or more policies in their name can apply under the ‘Policyholder Reservation Policy’.
- They need to link the PAN details with their LIC policies before February 28, 2022.
- The reservation is only valid for Indian residents. NRI policyholders cannot avail of the reservation.
- According to the report, a policyholder can bid the amount up to Rs 2 lakh net discount. Only the policies which have a discount of not more than Rs 2 lakh will be considered while allotment.
- Demat Account: The policyholders can apply for the IPO through their own Demat accounts. It will contain all the details like PAN number etc.
- ABSA Method: Another method that can be used for the application is Applications Supported by Blocked Amount (ABSA). According to FE, under this method, the full amount of the bid will be blocked by the bank in the account of the ABSA bidder.
- Policyholders using this method will have to ensure that their ABSA account has sufficient balance for credit.
- Also, the documents need to be submitted to the broker, registrar and transfer agents.
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