Life Insurance Corporation of India’s (LIC) first sale of stock (IPO) is good to go to open on May 4 and close on May 9. The public authority will sell a 3.5 percent stake in state-possessed Life Insurance Corporation (LIC) to collect Rs 21,000 crore to the exchequer. Up to this point, Paytm IPO in 2024 was the biggest ever IPO in India at Rs 18,300 crore, trailed by Coal India in 2010 at almost Rs 15,500 crore and Reliance Power in 2008 at Rs 11,700 crore.
LIC IPO DETAILS
The public authority has additionally recorded papers with Sebi looking for exclusion from the 5% stake deal standard. As per the Securities and Exchange Board of India (Sebi) standards, organizations with a valuation over Rs 1 lakh crore need to sell a 5 percent stake in an IPO. LIC’s installed esteem, which is a proportion of the combined investors’ esteem in an insurance agency, was fixed at about Rs 5.4 lakh crore as of September 30, 2024, by worldwide actuarial firm Milliman Advisors.
Given financial backer criticism, the market worth of government-possessed LIC has been fixed at 1.1 times its implanted worth or Rs 6 lakh crore. The public authority had in February intended to sell a 5% stake or 31.6 crores partakes in the protection behemoth and had recorded draft papers with Sebi. Notwithstanding, last week, the public authority chose to bring down the issue size to 3.5 percent.
The LIC IPO would contribute a significant piece to the planned disinvestment continues in the current financial. The public authority has fixed disinvestment receipts at Rs 65,000 crore in the ongoing monetary year, up from Rs 13,531 crore wiped up last financial.
TYPICAL INVESTOR
Typical financial backers can apply in the Qualified Institutional Buyers (QIB) section and the retail segment. The piece of the Net Offer (counting the Anchor Investor Portion) won’t be more than 50% of the Net Offer. Part of the Net Offer can not be under 35% of the Net Offer.
LIC POLICYHOLDER
Policyholders who have at least one LIC strategy would be qualified to apply for the IPO under the Policyholder Reservation Portion. Notwithstanding, the LIC policyholder should guarantee that their Permanent Account Number (PAN) subtleties are refreshed in the approach records of the Corporation at the earliest.
Qualified policyholders will want to apply for the “Policyholder Reservation Portion” at the cut-off cost. The greatest bid sum under the policyholder reservation segment by a qualified policyholder should not surpass Rs 2,00,000. The total of bookings for qualified policyholders should not surpass 10% of the deal size.
LIC EMPLOYEES
Qualified representatives can apply for the “Worker Reservation Portion” at a limited cost. The greatest offering sum under the worker reservation segment for a qualified representative should not surpass Rs 2,00,000. The booking for qualified representatives can not surpass 5% of the absolute deal.
LIC IPO APPLIES ONLINE
Financial backers need to sign in to your web-based net-banking account.
Consequently, financial backers need to go to the area of the venture and snap on the IPO/e-IPO choice.
Then, at that point, financial backers will be expected to fill vault subtleties and ledger subtleties.
When these subtleties are placed, the confirmation interaction will be finished.
After the confirmation interaction, financial backers need to go to “Put resources into IPO”.
Financial backers need to choose the IPO for which they might want to apply.
Financial backers then need to enter the number of offers and the “bid cost”.
Financial backers should painstakingly peruse the “Agreements” record before setting any bid.
Financial backers can then affirm and submit their request by tapping on “Apply Now”.
