LIC's IPO worth Rs 21,000 crore is the biggest public offer the country has ever seen. LIC is offering a discount of Rs 60 to policyholders.
LIC's initial public offer (IPO) worth Rs 21,000 crore -- the biggest public the country has seen ever -- hit the Street on Wednesday. Potential investors can bid for LIC shares in a price band of Rs 902-949 in multiples of 15. LIC policyholders can avail a discount of Rs 60 and employees a discount of Rs 45.
According to the draft papers of LIC filed with market regulator SEBI, up to 10 percent of the shares on offer will be reserved for eligible LIC policyholders under the Policyholder Reservation Portion.
The bidding process for the IPO, the subscription window for which opened on May 4, ends on May 9.
Here's how LIC policyholders can avail the Rs 60 discount under the IPO:
It is mandatory for all policyholders to have a demat account to apply for shares of India’s largest insurer.
They will also have to ensure that the PAN information is updated in the LIC system.
Policyholders who have not updated PAN details before February 28 this year will not be eligible to participate in the IPO under the portion reserved for policyholders, according to the insurer's draft papers.
Those who have LIC policies but do not reside in India or NRI policyholders are not eligible to participate in the IPO under the policyholder reservation portion. Only resident Indians can apply for shares under this category.
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Policyholders with lapsed policies can also apply for shares in the LIC public offer under the policyholder reservation portion. The insurance behemoth will allow all policies that have not exited the LIC records as a result of maturity, surrender, or the policyholder's death to apply for the shares.
Even those policyholders who have a joint account can participate in the IPO. However, only one of the two policyholders will be eligible to apply for the shares.
Group policies do not qualify for bidding under the policyholder reservation portion.
(Edited by : Ajay Vaishnav)
First Published: IST