On May 4, the much-anticipated initial public offering (IPO) of Life Insurance Corporation of India (LIC) will begin accepting subscriptions. In India, the state-owned insurance company LIC is a household name, and its initial public offering (IPO) was the most talked-about topic in the D-Street market.
The LIC IPO is worth over Rs 21,000 crore, making it the largest IPO in Indian stock market history. LIC is valued at Rs 6.07 lakh crore in the IPO. In an initial public offering, the government will issue a 3.5% interest in the company, or 22.13 crore shares, down from a projected 5%. The public issue’s subscription will commence on May 4 and end on May 9. A pricing range of Rs 902-949 has been defined.
In the IPO, LIC has set aside 2.21 crore shares, representing 10%, for policyholders and 15.81 lakh shares, or 0.7%, for employees. An individual retail investor can subscribe for up to 14 lots, while the lot size is 15 shares. (Source- ET Online)
Why should you invest in LIC IPO:
The government lowered the size of the LIC IPO from Rs 65,000 crore to Rs 21,000 crore. Market participants believe the LIC IPO has become more appealing due to the lower valuation.
LIC still has many possible qualities and tremendous development opportunities because it can go out into areas where it isn’t already active. LIC still has a market share of roughly 60%.
Meanwhile, the market’s wild bull run of the previous year has ended. As a result, market players feel the LIC IPO could be an excellent medium- to the long-term investment opportunity.
Let’s take a look at the critical pointers before investing:
Retail investors and employees would receive a 45% discount, while policyholders would receive a 60% discount if their PAN card is linked to the insurance.
According to laws, the maximum bid amount under the retail, policyholder, and employee quotas cannot surpass Rs 2 lakh. If a retail investor is simultaneously a LIC policyholder and employee, he can independently bid in each of the three categories. As a result, his total practical limit will be Rs 6 lakh.
Even if you only have one LIC policy, you can apply for the LIC IPO through the policyholder reservation section. If the policyholder’s PAN card is linked to the insurance, they will also receive a Rs 60 discount. The deadline to link a policy to a PAN was February.
How to apply for LIC IPO:
There are several ways to apply for the LIC IPO:
Connect your bank account to a secure UPI ID and link it to your GCL account. Now is the time to book your IPO. The bid amount will be frozen in your bank account after accepting the mandate.
If you already have a GCL Demat account and want to Apply for the LIC IPO, learn more, go here & visit https://bit.ly/371vXoj.
If you don’t already have a GCL account, create one now. Click https://bit.ly/3Kpa7bW.