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LIC IPO Latest Update: Considered as the country’s biggest-ever public offering, the IPO of over 31.6 crore shares or 5 per cent government stake is likely to take place in March. Last week, the LIC filed the draft papers with capital market regulator Sebi for the sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.
Giving details, DIPAM) Secretary Tuhin Kanta Pandey had said in a tweet that the DRHP of LIC IPO has been filed with the SEBI. “The DRHP of LIC IPO has been filed today with the SEBI. For filing valuation, about 31.6 crore shares are on offer representing 5 per cent equity,” Tuhin Kanta Pandey tweeted.
The IPO is 100% OFS by GOI and no fresh issue of shares by LIC
For filing valuation about 31.6 cr shares are on offer representing 5% equity. pic.twitter.com/UizbeiPloD
— Secretary, DIPAM (@SecyDIPAM) February 13, 2022
Can lapsed policyholders apply for LIC IPO?
The draft prospectus of LIC clearly states that the policies which have not exited the records by way of maturity, surrender or by way of death of the policyholder are eligible to apply for the IPO.
“All policies which have not exited our records by way of maturity, surrender or by way of death of the policyholder are eligible for reservation under the Policyholder Reservation Portion,” the draft prospectus of LIC stated.
To bring cheer to its nearly 29 crore policyholders, the LIC has reserved 10 per cent of the offer size for them. The LIC is also said to be offering the IPO at a discounted price to its policyholders and employees.
Key things to know if applying for LIC IPO:
1) Any policyholder willing to get a share in the LIC IPO should have a demat account since the equity shares will be allotted only in the dematerialized form. Moreover, the policyholder must have exclusive account and can’t apply from the demat account of their spouse/relative. Apart from this, the bidding process under the ‘Policyholder Reservation Portion’ can be done through the Applications Supported by Blocked Amount (ASBA) and the UPI mechanism.
2) In the ‘Policyholder Reservation Portion’ category, only one of the two policyholders will be eligible for equity shares. Moreover, the PAN number of the bidder has to be updated in the policy records.
3) Another thing to keep in mind that the spouse of a deceased policyholder, who is receiving annuities, will not be eligible to apply for the IPO.
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