LIC IPO Offer Details
The IPO is 100% Offer for Sale (OFS) by the selling shareholder (President of India, acting through the Ministry of Finance, Government of India).
The selling shareholder, through its letter dated April 26, 2022 conveyed its approval for the offer for sale of up to 221,374,920 Equity Shares. The face value of the Equity Shares is Rs 10 each.
The Employee Reservation Portion shall not exceed 5% of the post-Offer Equity Share capital.
The Policyholder Reservation Portion shall not exceed 10% of the Offer size.
The company may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis.
One-third of the Anchor Investor Portion is to be reserved for domestic mutual funds, subject to valid bids being received from domestic mutual funds at or above the anchor investor allocation price.
LIC IPO:
he Initial Public Offering (IPO) of the insurance behemoth Life Insurance Corporation (LIC) of India is going to hit primary markets on 4th May 2022 i.e. tomorrow. The Government of India (GoI) has fixed LIC IPO price band at ₹902 to ₹949 per equity share announcing ₹60 discount to the policyholders and ₹45 discount to LIC employees applying for the public issue. The public issue will remain open for bidding till 9th May 2022.
LIC IPO GMP:
According to market observers, LIC IPO grey market premium (GMP) today is ₹85, which is ₹16 higher from its yesterday's grey market premium of ₹69.
LIC IPO date:
The public issue will open on 4th May 2022 and it will remain open for bidding till 9th May 2022.
All You need to know about LIC
1. When is the LIC IPO?
The IPO is set to open on May 4th and close on May 9th, 2022.
2. How many shares are being issued in the IPO?
The LIC IPO comprises an offer for sale of 221.37 million shares.
3. What is the price band for the issue?
The IPO comes with a price band of ₹902 TO ₹949 per Equity Share
4. What advantages do policyholders have in the LIC IPO?
A discount of Rs. 60 per share is being offered to eligible policyholders bidding in the Policyholder Reservation Portion. Thus, eligible policyholders can apply in the price range of Rs. 842 – Rs. 889
5. How can I know if I am an eligible policyholder?
LIC has stated that all policyholders have until 28th February 2022 to update their PAN card details on their website.
Check your Policy-PAN linking status on https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
6. What discount do retail bidders & employees get?
A discount of Rs. 45 per share is being offered to Retail Individual Bidders and also to eligible Employees. Thus, Retail bidders and Eligible employees can apply in price range of Rs. 857 – Rs. 904
7. What do I need to apply for the IPO?
One must compulsorily have two things to apply for the LIC IPO – a Demat Account and a PAN card. A Demat Account is needed to credit the shares if you receive an allotment. A PAN Card is essential for all IPOs so that the IT department can track the inflow and outflow of money for individuals.
8. When is the last date to link PAN card with LIC policy?
LIC has stated that all policyholders have until 28th February 2022 to update their PAN card details on their website.
Also Read: How can policyholders link their PAN to LIC policies - to be eligible to apply in the LIC IPO in the policyholder category
9. What if I have multiple policies?
If you have multiple policies, then all policy numbers can be added. However, you can apply for the IPO only once, even if you have multiple policies.
10. Can non-policyholders participate in the IPO?
Yes, the IPO is for everyone. Non-policyholders can apply under the retail investors or institutional investors category. However, you may not get the benefits that policyholders may get.
11. Can senior citizens participate in the LIC IPO?
Yes, anyone with a valid PAN card and a Demat Account can apply for shares in IPO as an investor.
12. I am a proposer of a policy for my minor child. Whether I am eligible for reservation under the Policyholder Reservation Portion?
Since you are the owner of the policy and hence being a policyholder, you are eligible for reservation under the Policyholder Reservation Portion.
13. Is there a lock-in period?
There is no lock-in period for shares allotted in the IPO.
14. Can joint policyholders apply individually for share allotment?
No, joint policyholders cannot apply individually for share allotment. Only one of the two holders can bid in the IPO under the Policyholder Reservation Portion. The other individuals can apply under the retail category with their PAN cards.
15. Can a policyholder apply for IPO from someone else's Demat Account?
No, a policyholder using the Policyholder Reservation Portion to apply for the IPO needs to have their Demat Account to be eligible. If you do not have a Demat Account, you can open one with a valid Depository Participant
Conclusion
This article has attempted to answer some of the most frequently asked questions about the LIC IPO.
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