Pricing changes possible after roadshow
According to the report, LIC’s mega IPO can be presented on March 10 and it can be subscribed till March 14. It was told that the issue price of the company can be fixed at Rs 2000-2100. The government has started a roadshow with investors for the issue. According to the report, the pricing of the IPO can be changed after seeing the capability of the investors and after talks with the government.
Anchor will open for investors on March 9
It is worth noting that on February 13, the draft documents for LIC IPO were submitted to the market regulator SEBI on behalf of the government. According to this, the policyholders of the company will get 10 per cent share in the issue, while 5 per cent share has been reserved for the employees of the company. Now in the recent report it has been said that if the issue of LIC gets regulatory approval in time, then it will open on March 10 and may close on March 14. With this, its anchor issue can open on March 9. According to the information, shares worth Rs 16,940 crore will be allotted to anchor investors.
Apply even if the policy is closed
Due to non-payment of premium on time or due to any other reason, many people’s LIC policy gets closed. On behalf of the company, it has been said that the policies which have been closed for five years, in such a case, they can be revived by paying less charge. As per the report, policyholders whose policies have been discontinued may also be eligible to apply for an IPO through reservation portion. The documents state that all such policyholders are entitled to invest under reservation for IPOs that have not been taken out of LIC’s record due to maturity, surrender or death of the policyholder.
21,500 crore unclaimed amount
Let us tell you that according to the information shared by LIC, it has Rs 21,500 crore of policyholders who are lying unclaimed till September 2021. That is, there is no one to claim for them. This means either these policyholders have died or their families are not aware of them. 18,495 crore as of March 2021 and Rs 16,052 crore by March 2020, which was Rs 13,842 crore as of March 2019.
Totally Offer for Sale IPO
This IPO of LIC will be the biggest IPO till date. As per the DRAP submitted to SEBI, the issue of LIC will be purely offer for sale. In this, the government will issue 31.6 crore shares under its 5 per cent stake. According to the report, according to this the embedded value of the company will be Rs 5.4 lakh crore. Normally the market cap of an insurance company is four times this value. According to this, the market value of LIC will be $ 288 billion i.e. about Rs 22 lakh crore and LIC will become the largest valued company of the country.
Do these two things before investing
If you are planning to invest in LIC IPO, then it is necessary for you to know some important things first. To invest in LIC IPO, first you need to have a PAN and Demat account linked to your LIC policy account. That is, you need to settle both of these tasks as soon as possible.