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

LIC IPO: As India's largest initial public offer (IPO)of Life Insurance Corporation of India is set to open for subscription on Wednesday, Zee Business Managing Editor Anil Singhvi speaks about all minute details and explains what investors need to do with IPO. The IPO will close on May 9. The government aims to raise Rs 20,557 crore through the issue by selling a 3.5 per cent stake in the state-run insurance behemoth. LIC has set the price band for this IPO at Rs 902-Rs 949 per equity share. 

As pe the LIC DRHP, a policyholder will get a Rs 60 discount and retail investors will be offered the issue at a discount of Rs 45 per equity share. The minimum bid lot is 15 shares and in multiples of 15 equity shares thereafter.  

Speaking about this IPO, Anil Singhvi said, as per the discount offered by the national insurer, policyholders will be charged Rs 889 per share, while it will be Rs 904 per share from the upper price and of Rs 949 apiece.  

A retail investor can apply for a maximum of up to Rs 200,000 in this issue. He said LIC has ensured that there is enough room for each category to apply for the IPO.  

Zee Business Managing Editor Anil said investors will get upfront discount while making application.  

"The most beautiful thing about this IPO is that it is offering discounts upfront during the time of application. It is probably the first IPO to do something like this. This way retail investors and policy holders will be charged only Rs 904 and Rs 889 per share respectively from the upper price band of Rs 49. However, investors should always apply with the higher price band," said Singhvi.  

WATCH | All you need to know about LIC IPO

#LICIPOWithZee | #LICIPO में पैसे लगाएं या नहीं?
किस भाव पर कितने शेयर लगाएं?
पॉलिसीहोल्डर को कितना डिस्काउंट?
पॉलिसीहोल्डर किस भाव पर पैसे लगाएं?
LIC IPO से जुडे़ सारे सवालों के जवाब

 LIC IPO की पाठशाला @AnilSinghvi_ के साथ...
@deepdbhandari https://t.co/WiguUtPE9A

— Zee Business (@ZeeBusiness) May 2, 2022

Going by the discount, a retail investor can apply for a maximum Rs 189,840 (210*904), while policyholders can apply for up to Rs 186,690 or 210 lot at the rate of Rs 189 (210*889).  

Earlier, Zee Business Managing Editor had said from speculated 10% stake sale, the government has reduced it to 3.5% now. "It has cleared any apprehension that the insurer would resort to further stake sell for at least one year. Companies usually do not put such information in public domain, but it is good that LIC has made its stand clear on its plan of reducing shareholding. It ensures additional fresh supply for one year." said the market Guru.  

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.