LIC IPO: Bid dates, prices, and other important details revealed
Life Insurance Corporation of India's (LIC) initial public offering (IPO) subscription will open for bidders on May 4 and shall close on May 9. The IPO price band has been fixed at Rs. 902-949 per equity share. The Centre will sell a 3.5% stake in the state-owned firm to add Rs. 21,000 crore to the exchequer, making it the largest-ever IPO in our country.
Why does this story matter?
The rapidly ballooning defense expenditure and the COVID-19 pandemic have put huge dents in the country's exchequer. As such, it becomes imperative to raise funds by selling a tiny portion of an insurance behemoth like LIC whose market valuation is pegged at a mind-boggling Rs. 6 lakh crore. Its IPO is higher than Paytm, whose IPO was valued at Rs. 18,300 crore in 2021.
Policyholders will get a discount worth Rs. 60 per share
The government is offering discounts to LIC employees and policyholders who will apply for the IPO. Policyholders will get a discount of Rs. 60 per equity share, while employees can avail discounts worth Rs. 45 per equity share. Policyholders are advised to follow certain steps prior to application so that their efforts do not go in vain.
Who are eligible for the policyholder quota?
Only those who have bought an LIC policy on or before February 13, 2022 are eligible for the 10% quota for policyholders. Such people should have a PAN-linked LIC policy and the linking process must be completed by February 28. In the case of joint policyholders, only one will be eligible for the quota. NRIs are ineligible but lapsed policyholders are not.
How to apply for the IPO online?
Login to your net-banking account, go to the investments section, click on the IPO/e-IPO option, and fill in the depository and bank account details. Post verification, go to 'Invest in IPO' > select the IPO you want > Enter the number of shares and 'bid price.' Carefully read the 'Terms and Conditions' document. Finally, confirm and place the order by clicking on 'Apply Now.'
What is the procedure to check share allocation?
To check whether shares have been allotted, applicants have to log on to https://www.bseindia.com/investors/appli_check.aspx. Select the issue type, and enter the issue name, application number as well as PAN details. Finally, click on search.
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