LIC IPO Update News: Investors are eagerly waiting for the IPO of Life Insurance Corporation of India, the country’s largest government insurance company. LIC’s IPO is coming next month in March. Insurance Regulatory and Development Authority of India (IRDAI), the regulator of the insurance sector, has given approval to LIC to bring an IPO.
LIC is coming up with the biggest IPO in India’s stock market history. Advertisements are constantly being given on the front page of the country’s leading newspapers regarding LIC’s IPO so that more than 25 crore policyholders can buy LIC’s stake.
Market experts say that LIC’s IPO can prove to be Saudi Aramco’s IPO for India. Saudi Aramco is one of the largest oil companies in the world. Its listing of $ 2940 million (Rs 2.19 lakh crore) is the largest listing in the world.
At present, the ownership of LIC is with the government. It is the largest life insurance company in the country. The government wants to raise around Rs 90,000 crore by selling stake in this company. This will help the government to achieve the disinvestment target of the current financial year. Even after the IPO, the ownership of LIC will continue to be owned by the government. According to the law, the government’s stake in LIC cannot be less than 51 per cent. Apart from this, the government cannot sell more than 25 percent of its stake in LIC during 5 years.
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According to a report by Crisil, LIC has a market share of 64.1 percent. Its return on equity is also the highest at 82 per cent. LIC is the third largest insurance company in the world in terms of life insurance premium. If we talk about market share, then there is no other insurance company in the world whose market share is 64 percent.
Discount to policyholders
LIC policy holders can get a discount in this IPO. Policyholders can get 5 percent discount in LIC IPO. Actually, reserve quota will also be kept for the insured in LIC IPO. Retail investors and LIC employees will also get a discount in the IPO. This discount will be fixed on the upper band of the share i.e. the price of the share.
Also read- LIC IPO: If you want cheap shares, then policyholders must do this work, if they miss, they will not be able to bid in IPO
Link PAN Card with LIC Policy (How to link PAN with LIC policy)
If you are the policyholder of LIC and want to buy shares in IPO, then you have to link your PAN card with the policy. The company has asked its policy holders to do the same. Without it it would be impossible to apply in IPO.
LIC has said that to participate in the IPO, policyholders will have to check whether their PAN card details are recorded in the records of LIC.
It is necessary for the policyholders to open a demat account first. Without this you cannot buy shares through IPO. This work is easily done online. At present, most of the policy holders of LIC do not have a demat account. The total number of policyholders of LIC is around 29 crores, while only 8 crore demat accounts have been opened in the country so far.
Tags: IPO, LIC IPO, Life Insurance Corporation of India (LIC), Share market, stock market
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