LIC IPO countdown begins, 3 days to go for policyholders to investThe insurance behemoth’s public issue offer, India’s biggest ever, is finally here and will start in three days on May 2 for policyholders, employees and anchor investors, with the subscriptions opening to the general public on May 4 and closing on May 9.In a first of its kind, the government – which calls the LIC’s mega initial public offering (IPO) as “LIC 3.0”, has offered policyholders a reservation in the total equity shares on offer. Indeed, policyholders will get a 10 per cent reservation of the total offer, while employees and retail investors will get a 5 per cent quota of the post-offer equity share capital. The 66-year old insurance company’s IPO will be priced in the band of Rs 902-949, with the government offering a Rs 60 per share discount to policyholders, and Rs 45 discount to employees and retail investors.The government is set to sell 3.5 percent of its stake in LIC for Rs 21,000 crore – valuing the insurance behemoth at 6 lakh crore, with bids allowed in the multiples of 15 equity shares.The limit set for bidding is Rs 2 lakh for policyholders, employees and retail investors. So, you can bid for a maximum of Rs 2 lakh worth, including the discount, of LIC shares under each of those quotas.The red herring prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI) on Wednesday noted that, “bids by eligible policyholders may be made at cut-off price…only those bids, which are received at or above the offer price, net of the policyholder discount would be considered for allocation under this portion.”If the February’s draft RHP is anything to go by then anyone with even one policy as on February 13 and the bid or offer opening date can apply under the policyholder reservation portion.For applying, read here: LIC IPO: How To ApplyFor more details on how to apply, read: LIC IPO: What Documents Do You Need For The IPI And How Can You Apply?For details if your are an employee, read: Employees To Get Discount On Subscribing LIC Shares. Details Here.
Source link
Strange India 