Who Is the main Promoter of LIC?
As of December 31, 2021, the Government of India holds a 100% stake in the largest insurer. At present, the government has 6,32,49,97,701 equity shares or 100% in LIC and is the only Promoter. After the IPO, the government will continue to be the largest shareholder of the LIC. The government looks to offer a 10% stake to LIC policyholders in the IPO.
What Is the Shareholding Pattern of LIC?
Government owns 100 per cent shares of LIC and will reserve as much as 10 per cent stake for its policyholders in the IPO. With Government holding full ownership as of now, there are no non-promoter-non public shareholders, underlying DRs and shares held by Employees Trusts in the LIC, as per the shareholding data filed with the exchanges as of December 31, 2021.
What Is the Grey Market Premium for LIC?
Shares of LIC IPO started trading in grey market as on Monday at a premium of Rs25. LIC IPO GMP today is Rs 91 that means grey market is expecting LIC IPO listing at around Rs997 (Rs949 + Rs 91 ), around 10 per cent higher from its issue price. Note that this mentioned premium is variable and will keep on changing as per the market sentinments and trends.
Know points About LIC
According to the Crisil report, LIC is not only the world's largest when it comes to home-market share with over 64.1% of the total gross written premium as of 2020 but also the one that offers the highest return on equity at 82%, apart from being the third largest in terms of life insurance premium.
LIC has a majority share of the life insurance market in India. The government, which hopes to raise as much as $12 billion from selling a stake in the IPO, expects the proceeds will help it bridge a deficit gap this fiscal year. The size of the issue would be mentioned in the DRHP up to 10% of the LIC IPO issue size would be reserved for policyhold
LIC has reported a profit after tax of Rs1,437 crore for the first half of the financial year 2021-22 as compared with Rs6.14 crore in the year-ago period. In H1FY22, new business premium growth rate stood at 554.1% as compared with 394.76% during the corresponding period of the preceding financial year.
In terms of total assets, the company is the sixth largest with $522 billion clipping at 8% annually between 2019 and 2021.
Its growth comes amidst the continued decline of its peers elsewhere as in 2020, the global life insurance market contracted by 3.1% to $2.79 trillion from $2.88 trillion in 2019 due to the pandemic.
How Many Shares Have Been Reserved for Retail Investors?
At least 35% of the shares have been reserved for retail investors, where the Qualified Institutional Investors (QIB) will be allocated up to 50% of the shares.
How Much Stake Will the Government selling in LIC?
earlier The government has notified that it will sell 5% of the total capital in the form of shares, but recently it was reduced to 3.5 % so it will retain a rest stake in the company.
What is the Discount in Lic Ipo for the policyholders , Employees or Retail investors ?
The policyholders will get a discount of Rs60 per share and a Rs45 discount for retail investors and employees.
Is it possible to submit more than one application for the public issue of LIC using one PAN?
No, it is not possible to submit more than one application for the LIC IPO or any other public issue using one PAN. The reason behind is, when the person decides to submit multiple IPO applications using one PAN, he/she will not receive a sanction. Therefore, the person will ultimately fail to receive an allocation of a specific public issue. Also, LIC asked its policyholders to update their PAN card with LIC and open a Demat account to subscribe under the reserved quota .
Is it demat account Compulsory to apply for shares in the Offer?
An investor can apply for an IPO even without a Demat account. However, if shares are allotted, they are transferred into the demat account of the investor as companies do not provide physical share certificates anymore. Therefore, a policyholder will need a demat account to apply in an IPO as in case of allotment, shares will be transferred to demat account only.
Can an individual apply for the public issue of LIC using minor’s bank account?
No because it is not possible to use minor daughter's bank account to apply for this LIC’s public issue.
Is current account allowed for applying the ipo?
No, it is not possible to use a current account to apply for the LIC IPO or any other IPO for that matter. As banks do not accept any public issue applications submitted via current accounts.
Is it possible for a policyholder to apply from the demat account of his/her spouse or son or a relative?
As per the norms laid down, policyholders who have one or more policies of the LIC as on the date of DRHP are eligible to apply for this offer under the Policyholder Reservation Portion. So, only LIC Policyholders are eligible to apply for the offer from their demat account and no other account will be considered for the same
is Hindu Undivided Family account eligible to apply for LIC’s public issue?
Yes, as per the shareholdings data filed with exchanges, if you are applying for Equity Shares as a ‘karta’ you are eligible to Bid under the Policyholder Reservation Portion.
Is it possible to alter my bid for LIC’s IPO after confirming its final application?
Yes, it is possible to change the bid for the LIC IPO after approving its final application. Moreover, you can amend the lot size and the UPI ID as well. But it should be kept in mind that any new modifications after approving the UPI mandate request will be counted as a new bid. In such cases, the banks will block funds again and besides your former application. Simultaneously, you will get a new UPI mandate request for this recent bid, just like before.
What is the LIC IPO listing Date?
The Life Insurance Corporation's (LIC) public issue offer is likely to open on May 4 and close on May 9, as the exact timelines would be confirmed post-April 27.
What are the various categories of investors which are allowed to participate in the IPO?
There are various categories of investors are as follows: Retail Individual Investors (RII) includes both resident Indians and non-resident Indians, as well as HUFs. The maximum sum that can be invested in this category is Rs2 lakhs. This category allows bidding at the cut-off price, with RII receiving at least 35% of the total offer. The next is Non-institutional bidders (NII) category is open to all Retail Category applicants who wish to apply for an amount greater than two lakhs. This group receives a minimum of 15% of the bid. Non-institutional bidders are eligible for 15% of the total offer. The third category is Qualified Institutional Bidders (QIB) which includes all public financial institutions, commercial banks, foreign portfolio investors, mutual funds, and other similar entities. All such organisations necessarily need to be registered with SEBI before applying. A limit of 50 % of the bid gets reserved for QIBs. The next is Anchor Investor as this group includes Qualified Institutional Buyers applying to invest ten crores or more through the book-building process. Up to 60 % of the QIB group may be allocated to Anchor Investors. The last Foreign Institutional Investors (FII) as this group includes all foreign investors who are citizens of another country and wish to invest in an IPO. This IPO investor prefers to invest in companies from emerging economies with fast growth rates, such as India.
is there any lock-in period for the shares purchased through the Policyholder Reservation Portion or any other retail catagory ?
So there is no lock-in period and the policyholders can sell the Equity Shares immediately on listing of the Equity Shares, May be in case of Catagories like employees based on the companies policy lock in can be there .
How to create a UPI ID using the BHIM app?
Follow the below mention steps to create a UPI ID using the BHIM UPI app: Step 1: First install the BHIM UPI app on your smartphone Step 2: Get the authenticate in your mobile number and create a password or PIN required to use through this app Step 3: Now select a bank from NPCI’s list of approved financial institutions Step 4: Next BHIM UPI app will then get your bank account details without putting them manually Step 5: At last, in case you have more than one bank account, select one that you want to register and connect with this app
How to apply for the IPO without UPI ID?
Yes, you can apply for an IPO through netbanking ASBA service provided by your bank if you don't use UPI. For this you will need to enter the following details for your application: Step 1: Demat ID as this is a 16-digit number used to identify your demat account. It is unique for every client. You can find your demat ID under Step 2: DP IDs on your client master list or you can get it from your broker Step 3: Depository - CDSL / NSDL Step 4: DP Name – your service provider name
Find out the link for Asba sevices or Ipo in your bank's net banking login and carry out the steps as mentioned there. for any help you can take assistance of the broker or the bank's where you have your saving account .
The main thing is that you should have active net banking to carry out the above mentioned process .