LIC IPO: How much money can LIC employees and policyholders invest? Learn the details

LIC IPO: How much money can LIC employees and policyholders invest? Learn the details

LIC IPO investment: Retail investors as well as policyholders and employees are eagerly awaiting LIC's IPO. LIC's IPO is the largest IPO in the country so far.

New Delhi: As March approaches, investor sentiment is on the rise. Because LIC's IPO date will open in March. This will be the largest IPO in the history of the country. According to a document submitted by LIC to SEBI, 35 per cent of the IPO will be reserved for retail investors. 10 per cent will be reserved for policyholders and 5 per cent for employees. This is the reason why retail investors as well as policyholders and employees are eagerly awaiting this IPO.

3.16 crore shares reserved

3.16 crore shares have been reserved for LIC's over 26 crore policyholders. However, only policyholders who have linked the PAN card with their policy can apply for this. In addition, the policy should have been issued by February 13 or earlier. In addition the policyholder is required to have a demat account in his own name. The last date to link the PAN card with the policy is 28th February.

In a LIC issue, the policyholder can bid for a maximum of Rs 4 lakh worth of shares. Two lakh rupees can be bid in the policyholder category and two lakh rupees in the retail category. Even if both the bids come from the same demat account, it will be considered valid. There is no lock-in time for policyholders. This means that after listing, they can sell the shares if they want.

Employees will be able to bid a maximum of six lakh

Similarly, LIC employees can bid a maximum of Rs 6 lakh. They can invest Rs 2 lakh each in employee category, policyholder category and retail category. In case of joint demat account, the policyholder can claim benefit for the quota only when he is the primary account holder. While in case of joint policy both the policyholders can apply but demat account of both should be different.

Following is the discussion on LIC's IPO size and dates. However, no official announcement has been made yet. So this is just an estimate.

When will the issue open: March 10, 2022

Issue will close: March 14, 2022

Issue size: 31,62,49,885 shares.

Offer for sale: 31,62,49,885 shares will be announced. Its value will be Rs 65,416.29 crore.

Discount: Employees and policyholders will get 10% discount.

Price band announcement: March 7.

Anchor Investors Allotment: 9 March.

Also read: Stay away from LIC IPO, company will not get premium valuation on listing: Vaibhav Agarwal

Share Lot: 7 shares.

Employee: 1.58 tax share reserve. Which will be available at Rs 1,890 after 10% discount.

Policyholders: 3.16 crore shares are in reserve. One share at Rs 1,890 after 10% discount.

Anchor Investors: 8.06 crore shares are in reserve. Its value is Rs 16,935.18 crore.

Also read: Are people withdrawing money from the market for LIC IPO? Know the answer of the market expert

Qualified Institutional Buyers: 5.37 crore shares are in reserve. Its value is Rs 11,290.12 crore.

Non Institutional Investors: 4.03 crore shares are in reserve. Its value is Rs 8,467.59 crore.

Retail investors: 9.41 crore shares are in reserve. Its value is Rs 19,757.71 crore.