LIC IPO for policyholders: Want to know most amazing thing about this issue? Zee Business Managing Editor Anil Singhvi reveals this!

LIC IPO for policyholders: What is the most beautiful thing about the upcoming Initial Public Offering (IPO) of the Life Insurance Corporation of India (LIC)? Zee Business Managing Editor Anil Singhvi reveals this! #LICIPOWithZee

Many potential investors who are also policyholders of LIC are in a fix on the issue of discounts. In their questions to Zee Business that have asked if the discount will be given at the time of application or at the time of allotment?

The Managing Editor said that the most beautiful thing about this IPO is that it is giving discount to its policyholders at the time of application – first IPO to do it, he added. So the policyholders will have to invest less because of the discounted amount.

The usual practice in IPOs has been that even if there is a discount, the investors are required to pay in full and the discount is given later.

LIC has done wonderful work by giving discount at the time of application, the Market Guru said.

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The market guru also cleared confusion regarding who will be considered as a retail investor in the mega IPO and at what price should one buy the shares and what about the discount?

Any investor who puts an application up to Rs 2 lakh, will be considered as a retail investor, Singhvi said. The category remains same as in the case of other IPOs, he added.

Also Read: LIC IPO opens on May 4: Discount for policy holders, retail investors, cut off price and more — Anil Singhvi explains what investors should do | WATCH

About LIC 

Incorporated on September 1, 1956, Life Insurance Corporation of India Ltd (LIC), was formed by merging and nationalizing 245 private life insurance companies in India. LIC has been providing life insurance in India for 65 years and is the largest life insurer in India. The brand LIC is recognised as the 3rd strongest and 10th most valuable global insurance brand according to Brand Finance. In addition to Indian operations, LIC has global presence with branches in Fiji, Mauritius, UK, etc.