Shares will be reserved for policyholders
10% of the shares in the IPO will be reserved for LIC policyholders. Whereas the employees will have a reserve of five percent shares in the offer. LIC said that policyholders holding DRHP (Draft Red Herring Prospectus) and one or more LIC policies as on the date of opening of the Bid/Offer, IPO, and are residents of India, are eligible to apply under Policyholder Reserve Shares. will be eligible.
Maximum investment limit
Eligible employees of LIC can apply under ‘Employee Reservation’. The bid under this scheme cannot exceed Rs 2 lakh or five per cent of the total offer. Altogether around 15.81 lakh shares have been reserved for employees and about 2.21 crore shares have been reserved for policyholders. Ordinary investors can apply in the ‘Qualified Institutional Buyers’ (QIB) segment and retail portion.
Over 9.88 crore shares held for QIBs
Over 9.88 crore shares have been reserved for QIBs and over 2.96 crore shares for non-institutional buyers. The government plans to sell 3.5 per cent stake in the previous draft red herring prospectus instead of five per cent. The government earlier wanted to sell 31.6 crore shares.
Rs 21000 IPO
The revised DRHP was presented to the market regulator last week. The government, which completely owns the insurance giant, plans to raise an amount of Rs 21,000 crore by selling around 22 crore shares, which is equivalent to 3.5 per cent stake in LIC. Through the Rs 21,000 crore IPO, the government is targeting an insurance company’s valuation of Rs 6 lakh crore. The previous draft papers related to the IPO were filed with Sebi in February after the government said it was planning to sell 316 crore shares in its 5 per cent stake sale in the state-run insurer. However, the IPO plan was then shelved. After the Russian invasion of Ukraine, the market faced volatility, due to which LIC’s IPO was postponed. Explain that IPO is brought by a company to raise capital from the market. It is the process of converting a private company into a public company. When companies need money, they list themselves in the stock market.
fbq('track', 'PageView');
