Ever since Life Insurance Corporation (LIC) announced the launch of the listed offering (IPO), $ 6.48 crore LIC policyholders have shown interest in getting the much-proclaimed share of the largest insurance company in the country, an official said.
The response to our IPO launch is wonderful. We have some numbers: 6.48 crore policyholders have linked their PAN number to the policy information up to the cut-off date (February 28, 2022), Rahul Jain, director of the Department of Investment and Public Asset Management (DIPAM) at the Ministry of Finance, told reporters.
LIC has set a price band of Rs 902-Rs 949 per share. The government intends to raise 21,000 crore Rs through the issue.
The officer said 10 percent reservations are given to policyholders in the listing if shares have been earmarked.
No matter who the policyholder is, if they have attached their PAN to the insurance details before February 28, they are eligible to participate in the LIC IPO through the reservation category, Jain said.
To explain, the DIPAM director said that anyone who is a policyholder can invest up to Rs to lakh in the reservation category and also Rs to lakh in the retail category. LIC policyholders would get 60 Rs in discount on the listing, he added.
According to Jain, the 6.48 crore policyholders are eligible to participate in the listing if they open their DMAT account.
From now on, we could see through the depositors that about 1.21 crore DMAT accounts have been opened by the policyholders, Jain said.
Asked why the LIC intended to flow, Jain said the government wants to bring corporate governance to the LIC and “share the good stories.”
The true value of the company is determined in the capital market. So you have to start with the capital market, Jain said.
The bid opens on May 4 and closes on May 9. The minimum bid is 15 shares and then in multiples of 15 shares.