LIC IPO: LIC is the country’s largest and oldest government insurance company. In small towns, especially in the private sector, before entering the insurance sector, people did not take insurance policies, rather they could be heard saying that they have taken LIC. From this it can be estimated that how much connection there is in small, medium towns and rural areas of the country towards LIC.
Emotional connection with LIC
In the last several years, LIC has done the work of giving great returns on the hard earned money of the people. Those who did not trust the stock market or who used to shy away from investing in the stock market, used to invest their hard earned money in LIC itself. This is the reason why LIC’s IPO has come, then there is enthusiasm among people about LIC’s IPO in small towns of the country. LIC was established in 1956, then only government companies used to be in the insurance sector. The insurance sector was opened to the private sector in 2000.
Enthusiasm about IPO among policyholders
Due to the enthusiasm in small towns regarding LIC’s IPO, the quota reserved for LIC policyholders has been filled 2.55 times so far. So the quota of employees has been filled 1.74 times. Retail quota 0.77 has been filled. It is the second day of LIC’s IPO opening. Retail investors can apply till May 9. Till then it is believed that the quota of retail investors can also be filled manifold. Let us tell you that LIC has 28 crore policyholders, out of which a large number of people have opened demat accounts to apply for IPO.
IPO to open for retail investors from May 4
from May 4 to 9, IPO of LIC will be open for subscription of retail investors. The government reduced the size of LIC’s IPO to Rs 21,000 crore. However, despite this, LIC’s IPO is the largest IPO in India’s primary market history. The price band of LIC IPO has been fixed at Rs 902 to Rs 949. The plan is to raise Rs 20,557 crore through IPO.
LIC shares trading at premium in gray market
LIC IPO in gray market is now trading at double rate. Even before the opening of the IPO, LIC’s stock is now trading at a premium of Rs 65, which is Rs 5 less than Wednesday. Let us tell you that the price band of LIC has been fixed at Rs 902 to 949 per share.
Discount on IPO Price
LIC is offering discount to policyholders investing in its IPO. Policyholders will be given a discount of Rs 60 per share, then retail investors and employees of the company will get a discount of Rs 40 per share.
How much will have to be invested?
Let us tell you that in this IPO, the LIC employee will have to invest a minimum of Rs 13,560. On the other hand, if we talk about policyholders, then these people will have to make a minimum investment of Rs 13,335. At the same time, other investors will have to spend Rs 14,235 to buy 15 shares of LIC.
Listing on the stock exchange as on May 17
1.58 million shares have been reserved for employees, 22.14 million for policyholders and 98.83 million for institutional investors. The shares will be allotted on 12th May and the shares will be credited to the demat account of the investors by 16th May. LIC’s IPO will be listed on the stock exchange on May 17.