Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Mon, 28 Feb 2022 09:58 AM IST
Summary
LIC IPO Latest News Update: The country’s largest LIC IPO is set to be launched in March. If you are also planning to invest in this, then it is most important for you to link PAN card with your account. Apart from this, you should have a demat account. Today is the last chance to settle both these tasks, if you are not able to do these things then you will not be able to participate in the IPO.
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Expansion
Can update pan card today
It is worth noting that the IPO offered by LIC will be the biggest IPO in the history of the country. There is a lot of enthusiasm among investors regarding this. But to apply in this, it is very important for you to update your PAN card from your account. Without this you will not be able to invest in IPO. The insurance giant had set February 28 as the date for this. For this, many reminders were also sent by the company. Within a month, 60 to 70 lakh policy holders have updated their PAN card. If you have not done this work till now, then complete it today, otherwise you will not be eligible to apply.
It is important to have a demat account
Demat is a must for applying for any IPO or for buying and selling of shares. There are two depositories in India NSDL and CDSL. Demat account can be opened with any of these. If a policy holder already has a demat account, there is no need to open a new one. But if you do not have a demat account, then you may be deprived of applying for LIC’s IPO. For this also today is the last chance i.e. whose demat account has been opened till February 28, he is eligible to apply. If you have not opened a demat account yet, then leave all the work and get it opened today.
Reserve the share of employees-policy holders
It is worth noting that in LIC’s IPO, 10 percent of the share can be reserved for policy holders, while five percent can be kept in reserve for the employees of the company. Let us inform that according to the draft document (DRHP) of LIC submitted to the market regulator SEBI, it has been clearly stated that if the policy holder does not update his PAN by 28 February 2022, then he will be eligible to participate in its IPO. will not be entitled. 3.16 crore shares have been kept in reserve for 26 crore policyholders of LIC.
35% for retail investments
A total of 35 per cent of LIC’s IPO is for retail investors. That is, the policyholder can bid for shares up to a maximum of Rs 4 lakh. He can bid in policyholder and retail categories. Even if both the applications are made from the same demat account, it will be considered valid. There will be no lockin period for the policyholders and they can sell the shares on the day of listing itself.
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.
20% FDI allowed
A major decision was taken regarding LIC IPO in the cabinet meeting held on Saturday. In fact, FDI was allowed in IPO-bound LIC. In the meeting, approval of Foreign Direct Investment (FDI) up to 20 percent has been approved in LIC through the automatic route. After this decision of the central government, now the way for foreign investment will open in the proposed IPO of LIC.