LIC’s IPO is going to open next week. The government has completed its preparations and at the same time the policyholders have also prepared themselves.
Director of DIPAM says that till February 28, more than 6 lakh policyholders have linked their PAN card with the policy. Now they have also become eligible to bid in the IPO.
wait over! LIC’s mega IPO is about to open just next week and for this, not only the government, but the investors have also completed their preparations. Apart from small investors, this is also a big opportunity for the policyholders of LIC.
According to Rahul Jain, Director, Department of Investment and Public Asset Management (DIPAM),LICAbout 6.48 lakh policyholders ofIPOIntended to bid. As per the data available with us, 6.48 crore policyholders have linked their PAN number with the policy till the last date of February 28. This means that now they are all set to bid in the IPO.
Policyholder will get 10% reservation
Policyholders will be given double benefits in LIC’s IPO. On one hand, 10 per cent of the total shares will be kept reserved for them. On the other hand, policyholders will also get a discount of Rs 60 per share. The company has prepared to sell shares worth about Rs 21 thousand crore and the price per share will be kept at Rs 902-949.
Rahul Jain said, “All policyholders who have linked their PAN card details with their policy by February 28 will be given a chance to bid in the 10 per cent reserved category of the IPO.”
Maximum investment of Rs 2 lakh
According to LIC, small investors will be given a chance to bid in the IPO, but the maximum investment limit has been fixed for them. Policyholders will be given an opportunity to buy shares up to a maximum of Rs 2 lakh.
Not only this, retail investors will also be able to bid to buy shares in the IPO for a value of up to Rs 2 lakh only. However, for this, it is very important for all policyholders to have a demat account. The company’s IPO will open on May 4 and close on May 9.
Record demat accounts can be opened in the country
Varun Sridhar, CEO, Paytm Money said,LICWith its IPO coming up, we are sure that May will prove to be a record month for Demat account opening in recent times.
The confidence that LIC has instilled in the mind of the common man over the decades is expected to attract a lot of investors from Tier 2 and 3 cities. Since, it is necessary to have a demat account for bidding in the IPO, it is being speculated that the number of demat accounts is going to increase tremendously.
