LIC IPO: Investors are eagerly waiting for the country’s biggest IPO. LIC’s IPO will be open in the next month i.e. March. This much-awaited IPO will be record-breaking in many ways. More than one crore investors will participate in this IPO. Along with this, it can also make a record in terms of fund raising and subscription. The government will sell its 5 percent stake in the company through this IPO.
Retail investors investing in IPO have many confusions. LIC itself has clarified many issues through question and answer.
1. Do policyholders need to have a demat account to apply for an IPO?
Yes, shares of a company cannot be issued in physical form as per SEBI’s ICDR Regulations. Shares will be issued only in dematerialized form. Therefore, policyholders or retail investors who want to invest in LIC’s IPO must have a demat account.
2. Will there be any lock-in period if the policyholder buys shares under reserve quota?
There will be no lock-in period for the policyholder. If he wants, he can sell his shares immediately after listing.
3. I have SBI Life Insurance policy, can I apply for LIC IPO against the reserve quota for policyholders?
No, under the reserve quota for policyholders in LIC’s IPO, only those people who have LIC policy can apply.
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4. Is there a minimum number of shares required for policyholders to apply?
There is a fixed minimum number of shares to apply in LIC’s IPO, which will be applicable to all categories of investors. After the IPO comes in the market, the minimum number of shares will be known.
5. What is the maximum number of shares a policyholder can apply for under Reserve Quota?After the IPO is introduced, the correct information will be available about it. Yes, it is stipulated that the aggregate value of the shares to be applied for should not exceed Rs 2,00,000.
6. Is there a minimum number of shares required to be held in a demat account?
There is no minimum number of shares required in a demat account.
7. Can a policyholder apply through the demat account of his/her wife/husband or son/daughter or relative?
No, it is necessary to have a demat account in the name of the policyholder.
8. Can one apply for shares worth more than Rs 2,00,000?
No, the maximum value of the shares for bidding is fixed at Rs 2,00,000. However, eligible policyholders can apply for additional shares of value above Rs 2,00,000 and Rs 2,00,000 in RIB category or Non-Institutional Bidders category respectively.
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9. How much discount will LIC policyholders get in IPO?
After coming in the IPO market, it will be known what percentage discount per share the policyholder will get.
10. Will there be tax exemption on investing in LIC’s IPO?
No, according to the Income Tax Rules, there will be no tax exemption for investing in LIC’s IPO.
11. I have a joint life policy, will both me and my wife get the benefit of reserve quota for applying for IPO?
The policyholder can apply for only one of the two shares under the Reservation Portion category. The PAN of the policyholder applying for the IPO must be updated in the policy records. It is necessary to have a demat account in the name of the applicant. If the demat account is a joint, the applicant must be the first/primary holder of the demat account.
12. My daughter is studying in Canada. She has a policy in India, can she apply for IPO under Policyholder Reserve Quota?
She must be in India during the bid/offer period of the IPO, only then she can apply for the issue.
13. I am a proposer for the policy of my minor son, will I be allowed to apply under Policyholder Reserve Quota?
Since you are the owner of the policy and hence a policyholder, you will be allowed to apply under Reserve Portion.
14- When is this IPO coming.
This IPO can be launched on March 11. It will open for anchor investors on March 11, while for other investors it will open after two days.
15. How much has LIC invested in the stock market.
Life Insurance Corporation of India also dominates the stock market. Shares worth Rs 9.76 lakh crore are in the pocket of LIC. LIC accounts for 29 per cent of the total equity AUM of domestic institutional investors. At the same time, its share in the country’s equity market is about 4 percent.
Tags: IPO, LIC IPO, Share allotment, Stock Markets, IPO
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