LIC IPO discount, reservation for policyholders | Key points
India Today
Policyholders must link Permanent Account Number (PAN) details with LIC policies to become eligible to get a discount on the IPO offer price.
Finance Minister Nirmala Sitharaman has talked about the reservation and discount that policyholders of Life Insurance Corporation (LIC) may get for the upcoming initial public offering (IPO). However, the launch date of the IPO of the country's largest insurer is yet to be announced by the government.
Referring to the pre-IPO valuation of LIC, FM Sitharaman on Monday said that the embedded value of the insurance behemoth was calculated in an "extremely scientific way" and disclosed in draft IPO papers filed with market regulator the Securities and Exchange Board of India (Sebi).
The eligible policy holders of LIC will have up to a 10 per cent reservation, and may get a discount on offer price, FM Sitharaman in Rajya Sabha.
Policyholders must link Permanent Account Number (PAN) details with LIC policies to become eligible to get a discount on the IPO offer price.
The IPO was originally planned to be launched in March, but the Russia-Ukraine crisis has derailed the plans as stock markets are highly volatile.
The government has time till May 12 to launch the IPO without filing fresh papers with the Sebi.
So far, the amount mobilised from the IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
